The Bottom Fishing Club: Unloved STMicroelectronics Ready For A 2025 Turnaround
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STMicroelectronics has seen its share price drop nearly 50% from its 2024 high due to a slowdown in industrial chip demand. Despite this, the company remains profitable with a strong balance sheet and is considered a bargain in the semiconductor sector. With a low EV to forward EBITDA ratio of 6.1x, STM is expected to outperform the S&P 500 in 2025, with potential upside to $50+ in 12-18 months if business trends improve.
January 10, 2025 | 10:30 am
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STMicroelectronics shares have dropped nearly 50% from 2024 highs due to a slowdown in industrial chip demand. Despite this, the company remains profitable with a strong balance sheet and is considered a bargain in the semiconductor sector. STM is expected to outperform the S&P 500 in 2025, with potential upside to $50+ in 12-18 months if business trends improve.
The article highlights that STM's share price has significantly dropped due to a slowdown in chip demand, but the company remains profitable and is undervalued. The low EV to forward EBITDA ratio suggests it is a bargain, and the potential for business trend improvement could lead to a price increase, making it likely to outperform the S&P 500 in 2025.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100