We're moving "PO from $63 to $70. Our sensitivity analysis suggests that margins in the transportation segment are likely to show further expansion. Despite the multiple rerating higher, TEL still trades at 14x C15 EPS with solid cash flows and an increasing dividend," the bank said in a note.
"We are upgrading...the... shares... given Auto recovery in Europe (highest content region), Commercial transportation headwinds not enough to derail transportation segment margins, Restructuring benefits ($100mn+ or $0.18/share) should drive margin improvement in Networks, Consumer segments, Metals tailwinds will drive $60mn+ ($0.11/share) of margin improvement, Strong FCF, significant share repurchases, and continued dividend increases, and Scope for portfolio optimization," the bank added.
TheStreet Ratings team rates TE CONNECTIVITY LTD as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:
"We rate TE CONNECTIVITY LTD (TEL) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company shows weak operating cash flow."