TT Electronics: Hold Rating Amid Earnings Downgrade and North American Challenges

TT Electronics (TTG – Research Report), the Technology sector company, was revisited by a Wall Street analyst today. Analyst Vanessa Jeffriess from Jefferies maintained a Hold rating on the stock and has a p97.00 price target.

Vanessa Jeffriess has given her Hold rating due to a combination of factors affecting TT Electronics. The company has issued a disappointing update, with a significant downgrade to its FY25 earnings expectations. This aligns with previous analyses suggesting challenges in meeting future margin targets, particularly given the difficulties faced over the past year. The valuation concerns and unresolved issues in North America further contribute to the cautious outlook.
Moreover, the announcement of a delay in the FY24 results due to extended audit processes adds to the uncertainty. While the expected earnings and free cash flow remain in line with prior guidance, a substantial non-cash accounting impairment in North America highlights ongoing financial challenges. These factors collectively justify the Hold rating, as the company may struggle to navigate these hurdles effectively compared to its peers.