On Tuesday, Barclays initiated coverage of STMicroelectronics shares with an 'overweight' recommendation and a price target of 60 euros.

In a study of semiconductor manufacturers, the analyst says that STMicroelectronics and Infineon are his two favorite stocks in the sector, highlighting their attractive valuations and good positioning in key markets.

Barclays cites an undemanding valuation level, which it explains in part by overly cautious analyst forecasts for both groups.

The intermediary nevertheless says it expects chip shortages to continue in the semiconductor sector in 2023.

With regard to STM, Barclays believes the Franco-Italian group's share price could double from its current levels.

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