Among the stocks to watch closely today, we can of course mention STMicroElectronics, which has been in the green since this morning, supported by a broker and following the announcement of a new strategic cooperation. We'll take a closer look at some of the news and the current price situation for this stock.
First, let's focus on an announcement made this afternoon by the STMicroElectronics group. In a press release issued this morning, the company announced that it had signed a cooperation agreement on Tuesday with Blue Wireless, a young wireless equipment manufacturer.blue Wireless, a young US-based telecoms equipment manufacturer specialising in the IoT or Internet of Things.
In detail, and according to the information communicated, under this agreement, Blue Wireless has integrated five components that were developed by STM within NotesTM's Notecard, which is its system on a module designed to accelerate the development of cellular IoT applications for connected assets at a very low price.
The Notecards discussed here are marketed by Blues Wireless at a starting price of $49 per unit and to LTE and GSM tier operators.
In the middle of the session of this Tuesday, September 14, 2021, STMicroElectronics Group's stock managed to rise above the €39 level and thus erased for good the previous resistance of €38.5 which was also its previous all-time high since August 31 and September 6 and 7.
The stock is also preparing to test the €41 level, which is a major target as it is the top of a long-term uptrend channel. Furthermore, this level also validates the tripling of the price since its March 18, 2020 low of €13.94.
Still in the news of the day that came in support of this stock, we note that STMicroElectronics stock gained 2% following the comment of broker Credit Suisse, which reaffirmed its outperform opinion and raised its price target from €41 to €46.50 in line with its previous estimates for the French-Italian semiconductor manufacturer for the period 2021-2023.
The broker also commented on its recommendation and price target upgrade by saying that it believes STMicro remains well positioned to sustain outsized growth with margin to quickly reach $14.5 billion in sales and as much as 19% operating margin by 2023. The broker's assessment comes after the company reported strong and encouraging quarterly results, which may also have contributed to the stock's current rise.