UPDATE: Societe Generale Reiterates Buy, $7.90 PT on STMicroelectronics on Core Refocus

Societe Generale reiterated its Buy rating on STMicroelectronics

and maintained its price target at $7.90. Societe Generale noted, "STM's new strategic review has revealed plans to exit ST-Ericsson by Q3 13 and refocus on the core units, i.e., where STM has market leading positions and strongest growth and margin potential. STM is looking to reduce its quarterly opex levels from c. $900m to some $600-650m per quarter by the start of FY 14. This should focus STM on its core markets with a total value of c. $140bn pa and drive operating margins to the targeted 10%+ level." STMicroelectronics closed at $6.48 on Friday.