RBC Capital Raises Price Target on Sensata Technologies (ST) as 2016 Outlook Remains Solid

RBC Capital reiterated a Sector Perform rating on Sensata Technologies (NYSE: ST), and raised the price target to $50.00 (from $45.00), ST reported Sept-qtr revenue/EPS of $727.4M/$0.72, which was below consensus on revenue ($734M) but beat Street EPS by $0.01.

Analyst Amit Daryanani commented, "While Dec-qtr guide was worse than expected (-1% q/q now vs. Prior implied guide of +5% q/q), ST provided initial 2016 growth outlook better than feared. ST expects core auto organic growth of 5-6% (Europe and North America production to grow low single-digits, China to grow 3-4%), low single-digit growth in HVOR (organic), and 10% + industrial sensing growth (CST acquisition) for 2016. The 2016 outlook marks an improvement from current levels for China auto (10%-15% y/ y decline for Sept-qtr) and HVOR (15-20% decline in Off-road). Looking forward, further integration of the Schrader and DeltaTech acquisitions and the initial integration of CST should enable EPS growth levers in 2016 and beyond (we think $3.10 EPS more realistic in 2016 vs. street at $3.23). Maintain SP & raising target to $50."

For an analyst ratings summary and ratings history on Sensata Technologies click here. For more ratings news on Sensata Technologies click here.

Shares of Sensata Technologies closed at $48.50 yesterday.

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