Analyst Wamsi Mohan from Bank of America Securities reiterated a Hold rating on Sensata (ST – Research Report) and decreased the price target to $27.00 from $33.00.
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Wamsi Mohan has given his Hold rating due to a combination of factors impacting Sensata Technologies Holdings Plc. Despite a strong first-quarter performance and an optimistic second-quarter outlook, concerns about the latter half of the year persist. The company anticipates lower revenue in the second half due to decreased unit volumes in the automotive sector, although management remains confident in expanding pre-tariff operating margins.
Additionally, while Sensata has effectively mitigated most of its tariff exposure, the potential for minimal quarter-over-quarter impact remains. The automotive market faces volatility due to production cuts and tariff-related uncertainties, with expected growth below targets. Although there are positive aspects such as a new CEO and a relatively low valuation, these are counterbalanced by slow growth and margin improvements, leading to the reiterated Neutral rating.
Mohan covers the Technology sector, focusing on stocks such as Apple, Western Digital, and International Business Machines. According to TipRanks, Mohan has an average return of 9.5% and a 55.73% success rate on recommended stocks.
In another report released on April 25, Wells Fargo also initiated coverage with a Hold rating on the stock with a $20.00 price target.