Barclays Maintains an 'Overweight' on Sensata Technologies (ST); 3Q11: Controls Business Overshadowing Sensors Story - for Now
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Price: $42.79 +2.05%
Rating Summary:
16 Buy, 12 Hold, 1 Sell
Rating Trend:
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Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
16 Buy, 12 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Barclays maintains an 'Overweight' on Sensata Technologies (NYSE: ST) price target of $39.00.
Barclays analyst says, "Despite a Controls-driven soft 4Q11 guide, core secular growth thesis remains on track. ST's 4Q11 EPS guidance of $0.46-$0.50 came in below the Street's $0.52, driving understandable weakness in the stock this morning. A more downbeat call than usual, the cautious outlook was predominantly driven by the Controls business, impacted by a slowdown in China over the summer and into early fall and further inventory destock. This quarter is showing us that the Controls business is more volatile that we've seen since IPO and can be hard to forecast, despite ST's otherwise good visibility."
"We are lowering our 4Q11 EPS estimate to $0.49 from $0.53, reflecting Controls, but more importantly, maintaining 2012E EPS of $2.45. Our view on the Sensors
business has not changed and we believe Controls will stabilize at lower levels in
2012. Our China contacts report that mid-fall demand has improved post a weak
summer - re-stocking in channel seems likely by 1Q12. Net net, we're not surprised to see the selloff here, but we believe sub $30 is a good entry point on a great long-term content story. We'd buy here."
For more ratings news on Sensata Technologies click here and for the rating history of Sensata Technologies click here.
Shares of Sensata Technologies closed at $28.48 yesterday.
Barclays analyst says, "Despite a Controls-driven soft 4Q11 guide, core secular growth thesis remains on track. ST's 4Q11 EPS guidance of $0.46-$0.50 came in below the Street's $0.52, driving understandable weakness in the stock this morning. A more downbeat call than usual, the cautious outlook was predominantly driven by the Controls business, impacted by a slowdown in China over the summer and into early fall and further inventory destock. This quarter is showing us that the Controls business is more volatile that we've seen since IPO and can be hard to forecast, despite ST's otherwise good visibility."
"We are lowering our 4Q11 EPS estimate to $0.49 from $0.53, reflecting Controls, but more importantly, maintaining 2012E EPS of $2.45. Our view on the Sensors
business has not changed and we believe Controls will stabilize at lower levels in
2012. Our China contacts report that mid-fall demand has improved post a weak
summer - re-stocking in channel seems likely by 1Q12. Net net, we're not surprised to see the selloff here, but we believe sub $30 is a good entry point on a great long-term content story. We'd buy here."
For more ratings news on Sensata Technologies click here and for the rating history of Sensata Technologies click here.
Shares of Sensata Technologies closed at $28.48 yesterday.
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