Benzinga | Jul 9, 2021 11:23AM EDT

CitiGroup Raises STMicroelectronics Rating To Buy, Sees 26% Upside Potential

* CitiGroup analyst Amit Harchandani upgraded STMicroelectronics NV (NYSE:STM) rating to Buy from Neutral.

* He raised the price target to (euro)39, up from (euro)36.50. The new price target implies a 25.7% upside potential at the current level.

* The stock's risk-reward was growingly unequal to the upside following the underperformance in the first half of the year, Harchandani stated.

* STMicroelectronics' automotive and industrial exposure supported its relative cyclical appeal, Harchandani's research note added.

* The stock has lost 1.2% year-to-date.

* Price action: STM shares traded higher by 3.80% at $38.08 on the last check Friday.