In a report released today, James Ricchiuti from Needham reiterated a Buy rating on Teledyne Technologies (TDY – Research Report), with a price target of $455.00.
James Ricchiuti has given his Buy rating due to a combination of factors that suggest a positive outlook for Teledyne Technologies despite a recent downturn. While the company’s shares experienced a significant drop after a revision of its 2024 sales outlook and first-quarter revenues that were below expectations, Ricchiuti sees these adjustments as having reduced the risks associated with the company’s short-cycle business components. Moreover, he anticipates strength in the second half of the year due to Teledyne’s longer-cycle business, which appears to have a clear trajectory for growth. Solid bookings with a book-to-bill ratio of 1.06 further reinforce this perspective.
Additionally, Ricchiuti approves of the announced share buyback program, considering it a judicious use of the company’s capital, particularly given the current share price. He believes that this move will not impede Teledyne’s capability to pursue mergers and acquisitions, which could serve as catalysts for future growth. The combination of these elements—de-risking of its business model, potential for second-half recovery, solid bookings, and strategic capital allocation—underpin Ricchiuti’s confidence in the stock, leading to his endorsement of a Buy rating.
Based on the recent corporate insider activity of 39 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of TDY in relation to earlier this year.
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Teledyne Technologies (TDY) Company Description:
Teledyne Technologies, Inc. engages in the provision of electronic and communication products for wireless and satellite systems. It operates through the following business segments: Instrumentation; Digital Imaging; Aerospace & Defense Electronics; and Engineered Systems. The Instrumentation segment includes monitoring and control instruments for marine, environmental, and industrial applications. The Digital Imaging segment offers sensors, cameras, and infrared systems. The Aerospace & Defense Electronics segment provides electronic components, data acquisition, subsystems, and communications equipment. The Engineered Systems segment develops and produces electrochemical energy systems and small turbine engines. The company was founded in 1960 and is headquartered in Thousand Oaks, CA.
