Goldman Sachs analyst Alexander Duval downgraded STMicroelectronics (STM) to Sell from Neutral with a price target of $19.80, up from $19.40.

Roughly two-thirds of the company's revenues relate either to the auto or smartphone end markets, areas with potential downside risks given the current macroeconomic environment and weak end market data points, Duval tells investors in a research note.

The analyst's new 2020 EBIT estimate is 15% below the midpoint of STMicroelectronics's guidance, and he argues that the company's structural improvement is more than priced into the shares.