STMicroelectronics NV

STMPA: XPAR (FRA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	€94.00	Ysppdkq	Mwgmxmly

STMicroelectronics Earnings: We’re Impressed by Automotive Revenue; Raising Our Valuations

Brian Colello

Jul 27, 2023

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.

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