Jefferies Starts TE Connectivity (TEL) at Buy, 'structural cost actions should drive higher margins'

Jefferies analyst Saree Boroditsky initiates coverage on TE Connectivity (NYSE: TEL) with a Buy rating and a price target of $180.00.

The analyst comments "We are launching coverage with a Buy rating and $180 price target. TE Connectivity has the leading share in the global connector market with leverage to secular growth from the 'electrification' of end markets, especially in automotive. Electric vehicles offer roughly double the content opportunity for TEL, and we especially like the company's exposure to local Chinese OEMs, which are expected to account for a majority of near-term EV industry growth. In addition to top-line growth opportunities, we believe structural cost actions should drive higher margins and model over 300bps of expansion through 2026. Our model calls for almost $9.50/share of earnings by 2026, and we see a path to ~$10/share from capital deployment actions."

For an analyst ratings summary and ratings history on TE Connectivity click here. For more ratings news on TE Connectivity click here.

Shares of TE Connectivity closed at $144.78 yesterday.

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