TE Connectivity raised to Buy as Credit Suisse eyes rising EV production
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TE Connectivity (NYSE:TEL) gained a new bull in Credit Suisse on Friday.
Equity analyst Guy Hardwick explained that the company’s end-market exposure to autos amid rebounding global auto production and the expectation of “a modest recovery of data and devices revenues in FY24, as destocking is completed” are driving increased optimism. As such, he raised his rating from Neutral to Outperform and pushed his price target from $136 to $138.
“Resilient auto production, rising EV mix, relatively low exposure to communications markets, margin tailwinds from restructuring, improving FX and commodity outlook, combined with the pull back in the stock since Q2-23 results lead us to upgrade TEL,” Hardwick told clients in a summary of his reasoning. “We expect Energy, driven by IRA investment, Medical and A&D to offset an expected slowing of Industrial equipment.”
Shares of TE Connectivity (TEL) ticked about 1% higher before the bell on Friday.
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