Bank of America analysts reiterated a Buy rating and EUR57 price target on STMicroelectronics N.V. (STM) in a note Tuesday, based on the Apple (NASDAQ:AAPL) concentration decreasing.
According to the firm, citing STM's recently published 20-F report, the Apple concentration fell to 12.3% from 16.8% in 2022.
"Decreasing Apple concentration should continue help narrow the multiple gap to peers. Apple exposure is now broadly in line with industry average (c10%)," they wrote.
STM remains the bank's top pick in European autos semis as the firm believes the company is well positioned to outperform the broader semiconductor industry.
This is "driven by (A) inflection in fundamentals in industrial and consumer in 2H24, (B) idiosyncratic revenue drivers (SiC, Space-X), and (C) continued market share gains," explained the bank's analysts.