Goldman Sachs analyst Mark Delaney has maintained their neutral stance on ST stock, giving a Hold rating on April 16.
Mark Delaney has given his Hold rating due to a combination of factors concerning Sensata Technologies Holding’s (ST) performance and future outlook. Despite Sensata’s first-quarter earnings surpassing expectations and the company demonstrating resilience in the automotive sector, the outlook for revenue growth has been slightly reduced from previous estimates, now at around 2%. This downward adjustment is attributed to the weakening industrial market and foreign exchange headwinds. Additionally, Sensata is undergoing a CEO transition, which may add a layer of uncertainty during the leadership changeover.
The Hold rating also considers the potential for Sensata to capitalize on intermediate to long-term opportunities, particularly in the area of electrification and hybrid vehicles. While the company has shown strength in internal combustion engine (ICE)-related sales and has seen growth in its high-margin Aerospace business, Delaney remains cautious. His projections for 2024 revenue are marginally below the company’s guidance, factoring in expectations for an above-seasonal performance in the second half of the year. Concerns about slower growth in battery electric vehicles (BEVs), especially from North American automotive manufacturers where Sensata is more exposed, could also impact future results. However, there is a recognition that Sensata could mitigate these challenges with successful execution in hybrid and ICE markets.
In another report released on April 16, Robert W. Baird also maintained a Hold rating on the stock with a $37.00 price target.
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Sensata (ST) Company Description:
Sensata Technologies Holding Plc engages in the designing, manufacturing, and marketing of electromechanical, electronic sensors and controls. It operates through the following two segments: Performance Sensing and Sensing Solutions. The Performance Sensing segment designs and manufactures sensors for the automotive and heavy vehicle and off-road markets. The Sensing Solutions designs and manufactures sensors and control products. The company was founded in 1916 and is headquartered in Attleboro, MA.
