Sensata, the Technology sector company, was revisited by a Wall Street analyst yesterday. Analyst Wamsi Mohan from Bank of America Securities reiterated a Hold rating on the stock and has a $32.00 price target.
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Wamsi Mohan has given his Hold rating due to a combination of factors that balance both positive and negative aspects of Sensata Technologies Holdings Plc. On the positive side, the company is expected to show operational margin improvements in the upcoming quarters, and the presence of a new CEO along with a relatively low valuation adds to its potential appeal. However, these positives are counterbalanced by slower-than-expected growth improvements and anticipated revenue guidance for the third quarter that falls below typical seasonal expectations.
Mohan also notes that while Sensata’s end-markets are currently weak, there are potential offsets from new product launches in the latter half of the year. Additionally, the company’s foreign exchange hedging strategy mitigates some financial risks, although there are minor concerns such as the impact of a recent cyber event. Despite raising the price objective to $32, the close proximity to the current stock price of $31.63 justifies the Hold rating, as the potential for significant upside appears limited under current conditions.
In another report released on July 14, Robert W. Baird also maintained a Hold rating on the stock with a $35.00 price target.
ST’s price has also changed moderately for the past six months – from $28.170 to $31.070, which is a 10.29% increase.