STMicroelectronics NV
STMPA: XPAR (FRA)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
€85.00 | Lvhpr | Lgvfvsxd |
STMicroelectronics Earnings: We’re Impressed by Automotive Revenue; Raising Our Valuations
Narrow-moat STMicroelectronics sparkled with solid second-quarter results and a promising outlook for the rest of the year, as the company continues to perform well in automotive chip revenue. We raised our fair value estimates to $66 from $59 for U.S. shares (EUR 60 from EUR 55 for European shares), which would equate to a 2023 price/earnings ratio of 15 times. We still view the company as modestly undervalued.