Following the publication of ST’s Q1 results yesterday (see our first take), the conference call held by ST had a positive tone. However, in our view, it is not enough to justifies a recommendation change. We believe risks remain high regarding 1/ execution of the restructuring process, 2/ growth while the group is faces a dynamic competition and 3/ a gradual improvement in margin which depends on restructuring, growth and FX. We reiterate our Neutral recommendation and keep our FV of EUR6.3.
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