The factors in favour of a rise in the STMicroelectronics share price:
First of all, the STMicroelectronics group has a real advantage in terms of its market positioning. Indeed, the company is currently one of the ten largest companies in the sector of semiconductor manufacturing for telecoms, consumer electronics and robotics in Europe.
Shareholders and investors interested in this stock also appreciate the group's industrial organization. This is mainly oriented towards offers concerning the Internet of Things and connected pipes, two sectors that are currently booming. More precisely, the group has been able to divide its activities and revenues into three main areas, which are firstly analogue and digital systems, integrated digital circuits or MDGs and Mems. By operating in this way and thanks to this division, the group can benefit from a better protection against the risk of exposure to a single sector of activity.
STMicroelectronics' strong capacity for innovation can also be appreciated, as it remains one of the pioneering companies in its sector. The group invests heavily in R&D to develop high-tech products, particularly in the field of microcontrollers and power electronics. It is also the company with the largest patent portfolio in its sector.
To ensure its future development, STMicroelectronics has also implemented a strategy of frequent acquisitions, enabling it to strengthen its position in certain privileged sectors such as the Internet of Things and next-generation mobile phones. Thanks to these strategic acquisitions, the group has won very lucrative contracts with major groups such as Apple for image capture and SpaceX for space components.
The analysts who study this value also recall that the company has been able to put an end to the decline in revenue that was recorded for a few years, especially) because of the saturation of the smartphone and computer market. Since 2016, the group's profits and revenues have in fact been experiencing an interesting rebound with an expectation of growth at least until 2019.
To conclude with the advantages of this company, it should also be noted that the overall financial situation of the STMicroelectronics Group is particularly healthy and stable. As a result, a rapid improvement in the debt rating is also anticipated.