STMicroelectronics (STM) PT Raised to $32 at Mizuho

Mizuho analyst Vijay Rakesh raised the price target on STMicroelectronics (NYSE: STM) to $32.00 (from $29.00) while maintaining a Neutral rating.

The analyst comments "Today, STM announced commercial agreement with AWS for future AI DC deployments (Link). Key highlights: 1) "multi-billion" AI DC incremental revenue we believe over ~5Y to 2030E or STM portfolio across connectivity, MCU, analog & power we believe including SiPho and high-voltage Si/SiC/GaN applications, 2) we believe potential pull-in of $1B AI DC and $500M optical rev targets (prior 2030E), 3) contra revenue (24.8M warrant shares at $28.38 exercise price, ~2.75% shares out) could be a GM headwind, but still OM-accretive with upside revenue. We continue to see LEO satellites, AI DC connectivity, 800V DC Power with GaN/SiC, and SiPho as accelerated growth drivers. Reiterate STM at Neutral, raise PT to $32 from $29, as we see STM benefitting from an expanded AWS partnership, but N-T analog headwinds still remain."

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