Buy Rating Affirmed for TE Connectivity on Robust Financials and Market Tailwinds

TE Connectivity (TEL – Research Report), the Technology sector company, was revisited by a Wall Street analyst yesterday. Analyst Wamsi Mohan from Bank of America Securities reiterated a Buy rating on the stock and has a $161.00 price target.

Wamsi Mohan has given his Buy rating due to a combination of factors including TE Connectivity’s (TEL) robust financial performance and favorable market conditions. In his analysis, Mohan highlights TEL’s growth in quarterly orders across all segments and a notable year-over-year improvement in gross and operating margins. The transportation sector particularly stands out with margin expansion attributed to stable pricing strategies. These results underpin Mohan’s confidence in the company’s ability to sustain solid growth and profitability moving forward.

The analyst further supports his rating by pointing to expectations of steady margins for the remainder of the fiscal year, driven by ongoing tailwinds in the electric vehicle mix and content. Additionally, TEL’s Communication Solutions segment is anticipated to double its AI-related revenue by the fiscal year 2025, contributing to the company’s long-term growth prospects. Despite some headwinds such as foreign exchange fluctuations and industrial equipment weakness, TEL’s strong free cash flow generation and shareholder return activities, including share repurchases and dividends, bolster the case for a Buy rating with a price objective increased to $161.

According to TipRanks, Mohan is a 5-star analyst with an average return of 10.0% and a 56.42% success rate. Mohan covers the Technology sector, focusing on stocks such as Apple, Amphenol, and International Business Machines.

TipRanks tracks over 100,000 company insiders, identifying the select few who excel in timing their transactions. By upgrading to TipRanks Premium, you will gain access to this exclusive data and discover crucial insights to guide your investment decisions. Begin your TipRanks Premium journey today.

TE Connectivity (TEL) Company Description:

Switzerland-based TE Connectivity Ltd. designs, manufactures and sells connectivity and sensor solutions. The company, which was founded in 2000, operates through the following segments: Transportation Solutions, Industrial Solutions, and Communications Solutions.