Bank of America Securities analyst Wamsi Mohan reiterated a Hold rating on Sensata (ST – Research Report) yesterday and set a price target of $33.00.
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Wamsi Mohan has given his Hold rating due to a combination of factors influencing Sensata Technologies’ financial outlook. The company’s guidance for the first quarter of fiscal year 2025 fell short of expectations, with anticipated revenue and earnings per share lower than both Bank of America and Street estimates. Despite this, Mohan expects a gradual recovery in operating margins beginning in the second quarter of fiscal year 2025, aided by inventory adjustments and recovery from pricing and foreign exchange pressures.
Although Sensata has demonstrated strong performance in certain segments, such as outgrowth in the global automotive market and increased revenues from new product launches, the overall growth and margin improvements are progressing slowly. The company’s relatively low valuation and the appointment of a new CEO are positive factors, but these are counterbalanced by potential risks, such as weaker-than-expected end-market performance and the impact of tariffs. Consequently, Mohan maintains a neutral stance, adjusting the price objective to $33 reflecting these uncertainties.
Mohan covers the Technology sector, focusing on stocks such as Apple, International Business Machines, and Western Digital. According to TipRanks, Mohan has an average return of 10.8% and a 58.20% success rate on recommended stocks.