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Valued at a market cap of $57.2 billion, TE Connectivity plc (TEL) is a Ballybrit, Ireland-based industrial technology company that designs and manufactures highly engineered connectivity and sensor solutions.
This tech company has underperformed the broader market over the past 52 weeks. Shares of TEL have gained 20.4% over this time frame, while the broader S&P 500 Index ($SPX) has soared 23.3%. Moreover, on a YTD basis, the stock is down 13.8%, compared to SPX’s 7.4% rise.
Narrowing the focus, TEL has also notably trailed the State Street Technology Select Sector SPDR Fund’s (XLK) 47.7% return over the past 52 weeks and 20.3% YTD gain.
On Apr. 22, shares of TEL plunged 9.1% after delivering its Q2 results. Driven by growth in both the Industrial and Transportation segments, the company’s net sales increased 14.5% year-over-year to $4.7 billion. Moreover, its adjusted EPS rose nearly 24% from the prior-year quarter to a record $2.73, exceeding analyst expectations by 1.1%.
For the current fiscal year, ending in September, analysts expect TEL’s EPS to grow 28.8% year over year to $11.28. The company’s earnings surprise history is promising. It topped the consensus estimates in each of the last four quarters.
Among the 18 analysts covering the stock, the consensus rating is a "Strong Buy,” which is based on 14 “Strong Buy” and four "Hold" ratings.
The configuration is slightly more bullish than a month ago, with 13 analysts suggesting a “Strong Buy” rating.
On Apr 23, Truist maintained a “Hold” rating on TEL but lowered its price target to $240, indicating a 22.4% potential upside from the current levels.
The mean price target of $261.67 suggests a 33.5% premium to its current price levels, while its Street-high price target of $297 implies a 51.5% potential upside.
