Robert W. Baird analyst Tristan Gerra has reiterated their bullish stance on STM stock, giving a Buy rating today.
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Tristan Gerra has given his Buy rating due to a combination of factors that suggest a favorable outlook for STMicroelectronics. The company is expected to experience a sequential recovery in gross margins, starting with the fourth quarter, which marks the first significant rebound in nearly three years. This recovery is anticipated to continue throughout 2026, driven by pricing normalization, the removal of inefficiency charges, and improved utilization rates, making the stock an attractive entry point at current levels.
Additionally, the revenue outlook for 2026 appears promising with easy comparisons ahead. Factors contributing to this include the normalization of industrial inventories, potential market share gains, and increased content in smartphones. The ramp-up of a second satellite customer and a rebound in silicon carbide revenue, particularly with partnerships like Tesla and Sanan JV, further bolster the positive forecast. These elements collectively support the Buy rating, indicating strong growth potential for STMicroelectronics.
In another report released today, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $32.00 price target.