UPDATE: Sensata Technologies (ST) PT Raised to $72 at Morgan Stanley on EV Opportunity
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Morgan Stanley analyst Craig Hettenbach raised the price target on Sensata Technologies (NYSE: ST) to $72.00 (from $68.00) on the belief that the share price does not fully embed the opportunity in the EV market. ST is the analyst's top pick of the baseband suppliers.
The analyst reiterated an Overweight rating, stating "Investor discussions since our upgrade reveal a gradual improvement in sentiment, but the stock's low valuation multiple tells the bigger story. Namely, many investors are not completely sold that the transition to EVs will be a net positive for Sensata, a key narrative where we are more positive. While the stock has been strong recently and is one of the top performers in our coverage YTD, it has meaningfully underperformed over the last 5 years. Furthermore, ST is trading only 30% and 15% above its long-term P/E and EV/EBITDA multiples compared to peer TEL trading around 50% above on both metrics."
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