Sensata's Shift To Electrification Has Hurdles, Analyst Cites $16M-$20M In Restructuring Costs
Portfolio Pulse from Nabaparna Bhattacharya
Sensata Technologies (NYSE:ST) is transitioning from manufacturing sensors for the automotive market to expanding its exposure to electrification and developing a software/services business. The company expects restructuring costs of $16M-$20M in Q3 but anticipates saving $40M-$50M per year in the future. Truist Securities analyst William Stein reiterated a Hold rating on ST and lowered the price target to $43 from $48. ST has initiated a Q4 guidance below consensus, with sales expected to be 2.4% lower and EPS of $0.94.
October 05, 2023 | 7:03 pm
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Sensata Technologies is transitioning to electrification, expecting restructuring costs of $16M-$20M in Q3 but anticipates future savings. The price target has been lowered by Truist Securities analyst.
The transition to electrification and the associated restructuring costs are likely to impact Sensata's short-term financial performance. The lowered price target by Truist Securities indicates a potential decrease in the stock price. However, the anticipated future savings could offset some of these costs in the long term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100