On Thursday, HSBC initiated coverage of STMicroelectronics with a buy recommendation and a price target of 61 euros, seeing an attractive risk/reward profile for the stock.

In a sector note, which sees it start tracking major European semiconductor groups today, the broker explains that the Franco-Italian chipmaker has promising growth opportunities in areas such as vehicle electrification, mobility and the Internet of Things (IoT).

The broker adds that with a 2025 P/E of just 11x, compared with a five-year average of 15x, the share price currently offers undeniable potential for revaluation.

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