In the last three months, 5 analysts have published ratings on STMicroelectronics ( STM ) , offering a diverse range of perspectives from bullish to bearish.

The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.

The 12-month price targets, analyzed by analysts, offer insights with an average target of $33.4, a high estimate of $36.00, and a low estimate of $30.00. This current average has decreased by 12.11% from the previous average price target of $38.00.

Diving into Analyst Ratings: An In-Depth Exploration

An in-depth analysis of recent analyst actions unveils how financial experts perceive STMicroelectronics ( STM ). The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to STMicroelectronics ( STM ). This information offers a snapshot of how analysts perceive the current state of the company.

Rating: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of STMicroelectronics ( STM ) compared to the broader market.

Price Targets: Analysts predict movements in price targets, offering estimates for STMicroelectronics's ( STM ) future value. Examining the current and prior targets offers insights into analysts' evolving expectations.

Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of STMicroelectronics's ( STM ) market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.

Stay up to date on STMicroelectronics ( STM ) analyst ratings.

Delving into STMicroelectronics's ( STM ) Background

A merger between Italian firm SGS Microelettronica and the nonmilitary business of Thomson Semiconducteurs in France formed STMicroelectronics ( STM ) in 1987. STMicroelectronics ( STM ) is a leader in a variety of semiconductor products, including analog chips, discrete power semiconductors, microcontrollers, and sensors. It is an especially prominent chip supplier to the industrial and automotive industries.

STMicroelectronics: Financial Performance Dissected

Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

Revenue Growth: STMicroelectronics's ( STM ) revenue growth over a period of 3 months has faced challenges. As of 30 September, 2024, the company experienced a revenue decline of approximately -26.63%. This indicates a decrease in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Information Technology sector.

Net Margin: STMicroelectronics's ( STM ) net margin excels beyond industry benchmarks, reaching 10.8%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of 1.98%, the company may need to address challenges in generating satisfactory returns for shareholders.

Return on Assets (ROA): STMicroelectronics's ( STM ) ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of 1.37%, the company may face hurdles in achieving optimal financial returns.

Debt Management: STMicroelectronics's ( STM ) debt-to-equity ratio is below the industry average at 0.19, reflecting a lower dependency on debt financing and a more conservative financial approach.

Analyst Ratings: What Are They?

Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.

Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.