STMicroelectronics downgraded to Equal Weight from Overweight at Barclays

Barclays downgraded STMicroelectronics to Equal Weight from Overweight with a price target of EUR 46, down from EUR 52. The analyst still likes the medium term investment case for STMicroelectronics, but struggles near term as the firm’s estimates are below consensus and it feels the stock’s valuation “isn’t enough of a support here.” Barclays cut EBIT estimates 20%. A strong second half of the year rebound “could change the narrative but it requires a material step up, which seems increasingly unlikely,” the analyst tells investors in a research note.