Stifel reaffirms its 'buy' recommendation on STMicroelectronics, with a price target raised from 58 to 60 euros, judging the valuation to be 'attractive and significantly below the peer average', at around 11 times expected EPS for 2023.

The broker raises its estimates (+14% for 2023 and +2% for 2024 on EPS) after a reassuring stability in gross margin, as indicated for 2023, with a publication deemed convincing for the fourth quarter.

"The strong execution on its order book, with further revenue growth indicated for the 2023 recession year, confirms ST's strong sector outperformance also for the current year", it believes.

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