Jefferies believes that there will be no further estimate cuts for the company headquartered in Switzerland. The brokerage notes that the growth forecast is expected to accelerate in the second half of 2025.

STMicroelectronics NV (STM) received an upgrade from analysts at Jefferies, who now have a ‘Buy’ rating for the stock.

According to The Fly, Jefferies believes that there will be no further estimate cuts for the company headquartered in Switzerland. 

The brokerage notes that the growth forecast is expected to accelerate in the second half of 2025, with the company’s financial metrics hitting a trough.

Among the growth drivers for STMicroelectronics is Apple Inc.’s upcoming iPhone 17 series – Jefferies expects increased use of STM’s solutions in the next-generation flagship from Cupertino. Apart from this, the brokerage expects a recovery in industrial demand to aid STM’s growth.

Other growth drivers for STM include artificial intelligence (AI) solutions, low-Earth orbit (LEO) satellites, silicon photonics, and auto microcontroller units (MCU.)

Jefferies has a price target of $35.6 for the STM stock, implying an upside of nearly 46% from current levels.

According to data from FinChat, the current average price target for STM is $27.4. Of the 22 ratings included in the data, 8 have a ‘Buy’ recommendation, one has an ‘Outperform’ and ‘Underperform’ recommendation, and 12 have a ‘Hold’ recommendation.

Earlier this month, analysts at Bernstein downgraded the STM stock on “weak” first-quarter guidance, and the lack of formal guidance for fiscal year 2025 resulted in visibility concerns.

This was after analysts at Baird, JPMorgan, TD Cowen, and Susquehanna reduced their price targets for the STM stock, with growth headwinds and guidance concerns finding a mention.

Retail sentiment on Stocktwits around the STMicroelectronics stock remained in the ‘bearish’ (42/100) territory.

STM sentiment and message volume February 19, 2025, as of 2 am ET | Source: Stocktwits

STM’s stock price has declined more than 22% over the past six months, while its one-year performance is worse, with a fall of over 45%.

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