Evercore ISI Removes on Sensata Technologies (ST) From Tactical Outperform List.

Evercore ISI analyst Amit Daryanani reiterated an In Line rating and $46.00 price target on Sensata Technologies (NYSE: ST).

The analyst comments "ST reported Sep-qtr results of $1,020M/$0.85 vs. street at $1,004M/$0.85 as the company saw 7% top-line growth and operating margins came in at 19.4% (~50bps uplift q/q). From a revenue perspective there were several moving parts - ST noted 650bps of content growth (above LT range of 400-600bps), market growth of 10.6%, M&A contribution of 3.3% offset by inventory adjustments (10%, $20M impact) and f/x headwind of 3.3%. While ST maintained a positive outlook for the Dec-qtr and potentially beyond, they did note signs of macro softness that is starting to impact inventory levels and potentially end-demand. For Dec-qtr they provided a guide that largely brackets street expectations at $1,000M/$0.88 at the midpoint, implying EBIT margins getting to 19.9% (+50bps q/q). For CY23, ST refrained from providing a formal guide, but we would note – content growth should be at the high-end of 400- 600bps, f/x will be a 300bps revenue and $0.11 EPS headwind. Inventory wind-down remains a key question ($50M, ~100bps headwind) and underlying auto production (IHS @ 3%)."

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 $39.66 yesterday.

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