After jumping more than 8% yesterday, STMicro shares are up a further 2% today in Paris, following yesterday's publication of better-than-expected quarterly results.

Against this backdrop, Oddo this morning confirmed its 'outperform' rating on the stock, while adjusting its target price from €53 to €58.

STMicro's quarterly sales came in at $4.42 billion, close to consensus ($4.4 billion) and reporting an increase of +24% year-on-year and +2.4% sequentially (guidance +1.8% +/- 350bp). EPS came in at $1.32, 21% above consensus.

'For fiscal 2023, the Group expects sales of between $16.8 and $17.8 bn (mid-range at $17.3 bn), up 4% to 10%, whereas consensus was expecting only 2% at $16.4 bn (we were expecting +5% at $17 bn)', reports Oddo.

Following this publication, we are raising our forecasts by 10%, positioning ourselves slightly above the mid-point of the range at $17.4 billion, incorporating the assumption of a 47% MB for the year and taking into account the assumption of significant increases in net Opex from Q1 ($900/916 million)", concludes the broker.

Since the start of the year, the stock has gained nearly 33%, including +15% in the last week.

Copyright (c) 2023 CercleFinance.com. All rights reserved.