TD Cowen analyst Joseph C Giordano has maintained their bullish stance on TEL stock, giving a Buy rating on November 12.
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Joseph C Giordano has given his Buy rating due to a combination of factors that highlight TE Connectivity’s potential for significant growth. The company’s strategic focus on AI opportunities is a major driver, with expectations for substantial revenue increases in this area. Giordano anticipates TE Connectivity’s AI business to grow from $900 million in fiscal year 2025 to over $2.5 billion by 2027, with the Digital Data Networks segment expanding at a compound annual growth rate of approximately 40% and comprising about 20% of total sales.
Moreover, Giordano notes that TE Connectivity’s innovative approach to AI, including its ‘backdoor AI’ exposure through grid enhancements, positions the company uniquely in the market. This strategy, coupled with the company’s ability to address both short-term and long-term growth expectations, supports the Buy rating. The anticipated increase in organic growth rates, potentially surpassing current estimates, further underscores the positive outlook for TE Connectivity’s stock.