stm sharply down in Piazza Affari, where it lost 4,4% in the mid-morning, a 5,345 euro, penalized by a flurry of downgrades and the heavy fall on Wall Street, last Friday, of Microchip Technology.
Already in the last session of last week, the Italian-French company's shares dropped 5,5%. A report by Equita had found that for the US company leader in the production of microcontrollers for general use, Microchip TechnologyThird-quarter revenue was $546 million, versus July-end guidance of $568 million.
“We estimate that general purpose microcontrollers represent approximately 15% of STM's revenues and therefore any reduction in sales of this product would have a limited impact for the company,” reads the report.
Hence the shower of downgrades for the Stm stock: JP Morgan downgraded the stock to neutral from overweight, with a target price of 5 from 8,8 euro, while Natixis reduced the target price to 10 from 10,6 euro while maintaining the buy rating e Morgan Stanley cut the recommendation to underwight from equal weight.
