In a report released today, Stephen Bersey from HSBC upgraded TE Connectivity (TEL – Research Report) to a Buy, with a price target of $175.00.
Stephen Bersey’s rating is based on several compelling factors that highlight TE Connectivity’s potential for growth and value. The company’s recent quarterly results surpassed expectations, with revenue increasing by 4.4% year-over-year, driven primarily by the strong performance of the Digital Data Networks subsegment. This subsegment experienced a remarkable 77% year-over-year growth, largely due to its expanding role in AI applications, which is expected to enhance the company’s long-term growth trajectory.
Another factor contributing to the Buy rating is TE Connectivity’s strategic positioning against tariff risks. With 70% of its production localized to its sales markets, the company is well-insulated from the ongoing tariff war, minimizing potential cost impacts. Additionally, the stock is trading at a discount compared to its historical multiples, presenting an attractive valuation opportunity. The target price has been raised to USD175, reflecting a significant upside potential of approximately 31% from the current share price, justifying the upgrade from Hold to Buy.
According to TipRanks, Bersey is a 5-star analyst with an average return of 16.6% and a 71.81% success rate. Bersey covers the Technology sector, focusing on stocks such as Intuit, Palo Alto Networks, and TE Connectivity.
In another report released on April 17, Bank of America Securities also maintained a Buy rating on the stock with a $160.00 price target.