Berenberg announced on Tuesday that it had upgraded its rating on STMicroelectronics from 'hold' to 'buy', although its target price had been revised downwards from €53 to €49.

In a sector note, the research firm considers that the semiconductor market is no longer far from a recovery, which has led it to revise its opinion on Infineon and STM, whose share prices have fallen sharply this year.

The analyst believes that the weakness of the industrial and consumer electronics markets, and even the automotive sector to some extent, is now well integrated into the share price.

In our view, STM's order book and margins should improve in the second half of the year, against a backdrop of stabilization in its main markets from the middle of the year onwards", he stresses.

"In addition, we believe that its exposure to Apple and Tesla, now below pre-2022 levels, could eventually favor a revaluation in terms of multiple", concludes Berenberg.

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