06:45 AM EDT, 04/27/2026 (MT Newswires) -- AlphaValue/Baader Europe changed its rating on STMicroelectronics (STMPA.PA, STMMI.MI) to reduce from sell amid a model update following the semiconductor maker's first-quarter results.

"We have increased our estimates for revenue as well as profitability after taking into account the upbeat Q2 26 guidance, in addition to the commentary regarding H2 being better than H1. The company is seeing multiple growth levers through its products in AI data centres, power semiconductors and MCUs,"analysts wrote in an April 24 note. "STM also has products dedicated for LEO satellites which are growing in volume day by day. In light of these trends and the improvement in factory utilisation, gross margin is expected to show a significant increase, as STM has a lot of fixed costs in its business model."

The projected EPS for 2026 was increased by 31.4% to $1.18, while that for 2027 was raised by 24.2% to $2.08. Over the long term, EBITDA profitability growth expectations were also lifted to 9% from 8%.

The stock's price target stands at 43 euros.