STMicroelectronics (1K) | Buy | Stronger sales and margins prospects ahead

研报英文原文证据摘录

STMicroelectronics (1K) | Buy | Stronger sales and margins prospects ahead

#TPchange #InDepth

Release date: 15 June 2026

Company research

ESG profile BuySTMicroelectronics

Italy | IT Hardware & Semis Beta Profile: MCap: EUR61.7bn

Target Price: EUR78.00 (48.00) Change in TP: 62.5 % Bloomberg: STMMI IM Reuters: STMMI.MI

Current Price: EUR67.76 Change in Sales: 2.7% 26E/5.8% 27E Free float 73%

Up/downside: 15.1% Change in Adj EBIT: 8.3% 26E/23.6% 27E Avg. daily volume (EURm) 645.9

YTD abs performance 201.5% Market data: 12 June 2026 Change in Adj. EPS: 8.0% 26E/22.8% 27E

52-week high/low (EUR) 68.51/18.80

Stronger sales and margins prospects ahead Price performance

Why this report?

Despite uncertain macro conditions, ST benefits from higher visibility from

customers and stronger order intake over the past few months, while the

backlog is now back to above one year (without any signs of pull-in orders so

far). The group is now back to the normal level of inventories in the

distribution channel, the lead times are increasing again for some products,

and pricing conditions keep improving. ST’s business is now firmly

accelerating in the upcycle (with stronger traction around data centres and

LEO satellites), and sales and margins look well on track to rebound in the

coming quarters (with further upside ahead), along with stronger FCF. We lift

our TP from EUR48 to EUR78 and reiterate our Buy rating.

Key findings FY to 31/12 (USD) 12/26E 12/27E 12/28E

The data centre sales are accelerating faster than initially expected, as demand Sales 14,420 16,655 18,685

keeps picking up and the group has finally increased its external back-end supply. EBITDA adj. 3,453 4,930 6,125

Data centre sales should finally climb toward USD1bn in 2026E, USD2bn in 2027E, EBIT adj. 1,449 2,830 3,925