Barclays ups STMicro to 'equal-weight' on outlook improvements

STMicroelectronics NV

Mon 10:48

** Barclays upgrades Franco-Italian chipmaker STMicroelectronics STMPA.PA to "equal-weight" from "underweight" as it sees revenue outlook improvements in numerous areas
** It also doubles its PT to $65 per share  
** "Our prior UW rating was largely predicated around gross margin concerns, which we feel are no longer valid," broker says seeing upside risks around price increases, optical strength and satellite
** The broker forecasts AI segment revenue of €2.3 billion in 2027 - up 130% from 2026 estimates - and satellite segment revenue at €1.3 billion in 2027, up from an estimated range of €600-900 million in 2025/26
** The broker sees 2027 co revenue around 6% above consensus 
** Out of 17 brokerages covering the stock, 13 rate it "buy" or "strong buy," three rate it "hold" and one "sell" - LSEG data
** Milan-listed shares are up 3.5%, topping Italy's blue-chip index .FTMIB 

 (Reporting by Emanuele Berro)
 ((emanuele.berro@thomsonreuters.com))