Barclays downgrades its recommendation on STMicroelectronics from 'overweight' to 'in-line weighted', with a price target reduced from €50 to €46, the day after the release of the semiconductor manufacturer's annual results.

"We still like the medium-term investment case for STMicro, but we struggle in the short term, as we are below consensus and valuation is not sufficient support at this stage," says the broker.

Barclays has cut its EBIT forecast by around 20%. A strong rebound in the second half of the year could be a game-changer, but it would require substantial growth, which is looking increasingly unlikely', he believes.

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