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Attempt to recover for the European stock markets, including Piazza Affari after the slip on the day before. Although concerns related to an escalation of the conflict in Ukraine remain, the market finds some relief in the face of the openness of the Russian president, Vladimir Putin, who, as reported by Reuters“is open to discussing a ceasefire agreement in Ukraine with Donald Trump, but excludes conceding important parts of territory and insists that Kiev abandon its ambitions of joining NATO”.
Meanwhile, it rises on the markets the wait for the publication of Nvidia’s accounts which will take place this evening with the US markets closed.
In this context, which still remains marked by caution, the Ftse Mib index now rises by 0.36% to 33,443.50 points. Among the stories of the day is STmicroelectronics which has revised its medium-long term expectations, particularly in terms of revenues. Unipol and Prysmian are among the best on the list with increases of over 2%.
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STM, spotlight on the CMD
STmicroelectronics recalibrates medium-long term expectations and the stock retreats by approximately 0.6% on the Ftse Mib, remaining just above the 23 euro area. On the occasion of the Capital Market Day (CMD) underway in Paris, the Italian-French semiconductor giant announced that “within the framework of an unchanged strategy, reaffirms its ambition to achieve revenues of $20 billion+, along with the associated financial model, which is now expected to be achieved by 2030“. A target that is thus postponed by three years, no longer by 2027 as was indicated in May 2022. Furthermore, it indicates a gross margin of approximately 50%, an operating margin of more than 30% and a free cash flow on revenues by more than 25%. ST also defines an intermediate financial model that foresees revenues of around $18 billion and an operating margin of between 22% and 24% in 2027-2028.
Through the implementation of a program to redesign the manufacturing base and an initiative to downsize the cost structure, we read in the press release released this morning, ST expects to achieve a cost reduction in millions of euros by the end of 2027 compared to the current level. dollars in the upper range of a three-digit range. This will allow the company to achieve an operating margin of 22% to 24% in 2027-2028.
Stellantis weak, double announcement under the lens
Sitting in the name of weakness for Stellar which loses approximately 0.8%. Two announcements arrived yesterday for the car manufacturer led by Carlos Tavares: il the first concerns the postponement of the launch of electric pick ups and the second the new STLA Frame platform.
Last night’s Stellantis note opens with the announcement of the unveiling of STLA Frame which it describes as “a multi-energy BEV-by-design platform, designed for full-size body-on-frame pickups and SUVs, key segment on some global markets, in particular the North American one” and “is extremely versatile” as “the platform supports internal combustion, hybrid, hydrogen, battery electric (BEV) and range-extender electric vehicle technologies (REEV)”. Ram and Jeep vehicles will be the first to use STLA Frame. Finally, Stellantis recalls that “it plans to invest over 50 billion euros in electrification to achieve the objectives of reaching 100% of the sales mix with BEV cars in Europe and 50% with cars and light commercial vehicles by 2030. BEV in the United States”.
Also yesterday, however, the CEO of Stellantis, Carlos Tavares, announced that he will postpone the arrival of his two RAM electric pick-ups to the first half of 2025 (initially scheduled for later this year). “We’re dealing with a really significant workload and we want to be very conservative in how we validate products and therefore take our time,” Tavares said during yesterday’s conference call.
Sustainability, or is it a strategic move to align with market realities?
Questions for the guests:
1. Can you provide an analysis of the European stock market’s attempt to recover from the previous day’s slip, given the ongoing conflict in Ukraine and the potential impact on international trade and investor confidence?
2. What is your opinion on the significance of Nvidia’s upcoming earnings release and the anticipated market reaction, considering the current geopolitical climate?
3. As STmicroelectronics recalibrates its medium-term expectations, how do you see this impacting the overall semiconductor industry and the Italian economy?
4. How concerned are you about the delay in the launch of two electric pickups by Stellantis, particularly given their potential importance in the shift towards sustainable mobility?
5. In your opinion, what should companies like Stellantis prioritize when making strategic decisions about investments in electrification and sustainability initiatives?
Section 1: European Stock Market Recovers Slightly Despite Ongoing Concerns About Ukraine Conflict
Guest 1: How significant is the current recovery in the European stock market, considering the potential ramifications of the ongoing conflict in Ukraine? Do you anticipate further fluctuations in the coming days or weeks?
Guest 2: To what extent do you think geopolitical tensions are affecting investor sentiment towards stock markets globally, and how might this impact investment decisions in the future?
Section 2: Anticipation for Nvidia’s Earnings Release and Potential Market Impact
Guest 1: What do you think are the main factors driving market expectations for Nvidia’s upcoming earnings release? Are there any specific sectors or industries that you believe will be particularly affected by the release?
Guest 2: Given the current geopolitical situation, how important is it for tech companies like Nvidia to demonstrate resilience and adaptability in their business strategies?
Section 3: STmicroelectronics Revises Medium-Term Expectations
Guest 1: What do you make of STmicroelectronics’ decision to recalibrate its medium-term expectations? Do you see this as a sign of concern about the semiconductor industry’s
