Stifel reiterates its 'buy' recommendation on STMicroelectronics while lowering its target price from 50 to 46 euros, reducing its EPS estimates by 31% for 2024 and 14% for 2025 after updating its model for the group.

The broker explains that he wishes to 'reflect weaker than previously expected dynamics for STMicroelectronics over the remainder of the year, particularly in industrial applications, but also in automotive'.

Stifel points out, however, that with a P/E 2025 of around 12 times after this revision, the valuation is attractive and below the average of its peers. It remains 'Buy' on the dossier, 'seeing the long-term growth case unchanged'.

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