UPDATE: Goldman Sachs Resumes Sensata Technologies Holding at Neutral on High Street Estimates
In a report published Tuesday, Goldman Sachs analyst Mark Delaney resumed coverage on Sensata Technologies Holding (NYSE: ST) with a Neutral rating and $39.00 price target.
In the report, Goldman Sachs noted, “We resume coverage of Sensata, a leader in sensors and controls, at Neutral, with a 12-month price target of $39 (13% upside). Sensata's key end markets are auto (65% of sales) and industrial, appliances, and telecom (35%). We expect sales to grow at a high single digit CAGR over the longer term due primarily to increased sensor content in cars, as well as better housing and industrial data. In addition, we expect gross margins will grow nearly 200 bps by 2014 due to lower commodity prices and cost reductions. However, we believe the 3Q13 Street consensus that is well above seasonal is a best case scenario. Our 2013/2014/2015 EPS estimates are $2.10/$2.65/$3.10 vs. the Street at $2.13/$2.52/$2.94.”
Sensata Technologies Holding closed on Monday at $34.46.
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