UPDATE: Goldman Sachs Raises Target to $30.50 on Sensata Technologies

Goldman Sachs maintains its Neutral rating on Sensata Technologies

and raises its price target by $2 to $30.50 a share on company's protection of margins by cost cuts, and a rebounding auto business. Goldman Sachs says, "Sensata reported December-quarter revenue and EPS slightly above its negative pre-announcement on December 12. The outlook for Marchquarter revenue is in line with expectations, while EPS was guided $0.02 below the Street. Despite the recent drop in sales, Sensata's variable operating model and recent cost reductions has helped the company protect margins. Content growth in sensors was only 5% in the December quarter, below Sensata's target of 7%-10%, although management expects content growth to re-accelerate in CY12. Commentary around auto production for 2012 was favorable and we continue to view Sensata and TE Connectivity as beneficiaries of this trend." ST closed at $30.68 a share on Wednesday.