Oppenheimer Reiterates Outperform Rating on Sensata Technologies (ST)

Oppenheimer analyst Christopher Glynn reiterated an Outperform rating and $44.00 price target on Sensata Technologies (NYSE: ST).

The analyst commented: "CFO Brian Roberts discussed process improvements, end markets, and long-term positioning. With ~54% of sales into auto, 18% HVOR, balance to general industrial, HVAC/appliance, and aerospace, ST's markets remain largely sluggish. Roberts views 3-6% average market outgrowth as realistic in more normal markets; nothing suggests this can't hold. More volatile recent outgrowth (still including some quarters nicely favorable) relates to factors like drivetrain and auto inventory adjustments (supply-mix/demand mismatches) and mixed industrial markets (although 3Q24/flattish organic responded to easier comparisons; 3Q/2Q +2.4% sequentially, with channel destocking largely played out). The strong register of EV and industrial electrification design-ins over the past four years retains positive outgrowth latency (3-4 year design cycles). ST is lighter in earlier, present generation EV's than for successive rollouts. The Sensing Solutions firming in 3Q24 included some ramp in A2L refrigerant leak detection, reasonably a $100M product within 2-3 years."

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 $30.60 yesterday.

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