In a report released yesterday, Wamsi Mohan from Bank of America Securities reiterated a Buy rating on TE Connectivity (TEL – Research Report), with a price target of $168.00.
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Wamsi Mohan’s rating is based on TE Connectivity’s strong financial performance and strategic positioning. The company reported better-than-expected revenue and earnings per share for the second quarter of fiscal year 2025, driven by robust results in both the Industrial and Transportation segments. Additionally, the company managed to achieve a higher operating margin and witnessed an increase in overall orders, particularly in the Industrial sector, which saw significant growth due to advancements in artificial intelligence.
Despite challenges in the automotive sector, TE Connectivity continues to demonstrate resilience and adaptability. The company is effectively mitigating the impact of tariffs through strategic pricing and supply chain adjustments. Furthermore, the acquisition of Richards and anticipated price increases in the Industrial segment are expected to contribute positively to future revenues. These factors, combined with a solid free cash flow and shareholder returns, underpin Mohan’s confidence in the company’s growth prospects, leading to a raised price objective of $168.
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 8.3% and a 53.01% success rate on recommended stocks.
In another report released today, HSBC also upgraded the stock to a Buy with a $175.00 price target.