Oddo BHF maintains its 'outperform' rating on STMicro shares, with a price target reduced from €55 to €50.

The analyst notes that 4th-quarter results came in slightly below expectations, mainly due to the inventory correction in the industrial segment and adjustments related to MobileEye.

As a result, forecasts for Q1 2024 and the full year 2024 have been sharply revised downwards, resulting in a 17% average reduction in Oddo BHF's forecasts.

For 2024, the broker expects sales of $16.4 billion, with an expected gross margin of between 40% and 45%, forecasts that the analyst deems 'cautious'. For its part, STMicro expects sales of between $15.9 bn and $16.9 bn, i.e. a drop of -8% to -2%.

The analyst also highlights STMicro's ongoing transformation, the maintenance of an attractive valuation, and a positive outlook for the future, despite persistent uncertainties.

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