NEW YORK (TheStreet) -- Shares of Sensata Technologies Holding (ST) , a sensors and electrical controls maker, are up 4.07% to $48,05 after the company said it would buy Schrader group of companies for an enterprise value of $1 billion to benefit from a growing market for tire pressure monitoring sensors, Reuters reports.
Schrader International, held by private equity firm Madison Dearborn Partners LLC, is the global leader in TPMS, Sensata said today.
EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he and Stephanie Link think could be potentially HUGE winners. Click here to see the holdings for FREE
TheStreet Ratings team rates SENSATA TECHNOLOGIES HLDG NV as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate SENSATA TECHNOLOGIES HLDG NV (ST) 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, notable return on equity, expanding profit margins, good cash flow from operations and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value."
Highlights from the analysis by TheStreet Ratings Team goes as follows: