UPDATE: Bank of America Downgrades TE Connectivity to Neutral on Near-Term Headwinds
In a report published Wednesday, Bank of America analyst Wamsi Mohan downgraded the rating on TE Connectivity Ltd. (NYSE: TEL) from Buy to Neutral, but reiterated the $43.00 price target.
In the report, Mohan noted, “We are downgrading shares of TE Connectivity to Neutral from a Buy rating which we have maintained over the past 2 years. Key reasons for the downgrade are (1) We view earnings recovery in 2H13 as less certain with the potential for negative estimate revisions, (2) European automotive production (~20% of revs, higher content) under pressure given weakening trends of premium brands in China; (3) Cyclical recovery in network solutions and industrial solutions could be delayed given weaker macroeconomic data; (4) stock correlated with analog semis (similar end markets) but has not seen the pullbacks that the analog semis have witnessed. We look to get more constructive when growth expectations are more sanguine.”
TE Connectivity Ltd. closed on Tuesday at $41.41.
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