Stifel Downgrades TE Connectivity (TEL) to Hold

Stifel analyst Matthew Sheerin downgraded TE Connectivity (NYSE: TEL) from Buy to Hold with a price target of $130.00.

The analyst comments "We lower our investment rating on shares of TE Connectivity to Hold from Buy. Shares have appreciated 15.6% YTD (vs. +7.7% for the S&P), in part (we believe) due to expectations that sales will stabilize and margins will improve in 2HFY23 on continued growth in auto and certain industrial segments, offsetting expected weakness in data center and appliances. Although this scenario makes sense, and is reflected in our model, we still see some risk to forward estimates, given a still uncertain macro outlook, and concerns that the broader industrial markets will slow and distribution (20-25% of sales by our estimate) will continue to correct. We note that our FY24 sales and EPS estimates remain below Consensus. Shares now trade at 19x NTM P/E, vs. its historical average of 17.5x, or 12.4x EV/EBITDA, above its historical average of 11.6x. We maintain our $130 price target."

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 $132.70 yesterday.

You May Also Be Interested In

• Deere (DE) PT Lowered to $570 at JPMorgan Ahead of Earnings
• JD.com (JD) Reiterated at Buy by Benchmark Amid Earnings Recovery
• Freedom Broker Upgrades Lifeway Foods (LWAY) to Buy