STMicroelectronics Rating Kept at Buy as Berenberg Notes Multiple Drivers Supporting Growth

07:51 AM EDT, 09/09/2026 (MT Newswires) -- Berenberg maintained its buy rating on STMicroelectronics (STMMI.MI, STMPA.PA, SGM.F), noting that multiple drivers back the European semiconductor company's growth. "In our view, the recovery in STMicroelectronics' (STM) traditional industrial and automotive businesses has been on track for the past few quarters. The company stated that distribution inventory has fallen below its normal target level, while POS demand remains strong and lead times for general-purpose microcontroller units (MCUs) have started to extend," the research firm wrote in a Wednesday note covering the semiconductor sector. "For the time being, we believe this suggests the recovery is increasingly driven by underlying demand rather than customer inventory restocking. This recovery should remain supportive into 2027." Berenberg noted that the management anticipates "further sequential" improvement in fourth-quarter gross margin. "However, for the time being, margin improvement will still be limited by underloading at new fabs, particularly the China fab, as well as costs related to the manufacturing restructuring." Against this backdrop, Berenberg maintained its sales, EBIT and EPS projections for 2026 through 2028. Additionally, the stock's price target of 68 euros was left unchanged.