BofA Securities raises Sensata Technologies stock price target to $32

Published 15/07/2025, 15:34
BofA Securities raises Sensata Technologies stock price target to $32

Investing.com - BofA Securities has raised its price target on Sensata Technologies (NYSE:ST) to $32.00 from $27.00 while maintaining a Neutral rating on the stock. The stock, currently trading at $31.78, appears undervalued according to InvestingPro analysis, which shows a Fair Value above the current market price.

The firm expects Sensata to report second-quarter 2025 revenue of $939 million and earnings per share of $0.84, compared to Street estimates of $932 million and $0.83, respectively. This exceeds the midpoint of Sensata’s guidance, which projected $925 million in revenue and $0.83 in earnings per share. With earnings scheduled for July 29, InvestingPro data reveals the company maintains a FAIR Financial Health Score of 2.33, suggesting stable operational performance.

BofA Securities notes that Sensata’s guidance included $10-20 million of tariff pass-through, which might end up lower due to tariff delays. The firm models second-quarter operating margin at 18.8%, representing a 50 basis point increase quarter-over-quarter but a 20 basis point decrease year-over-year.

The operating margin projection aligns with Street estimates and sits at the high end of Sensata’s guidance range. BofA Securities suggests that if the pass-through tariff revenue is lower, the company could potentially see slightly better margin rates.

Despite the price target increase, BofA Securities maintains its Neutral rating, citing that positive factors such as the new CEO and relatively low valuation are offset by negatives including slow improvement in growth and margins. For deeper insights into Sensata’s valuation and performance metrics, including exclusive ProTips and comprehensive analysis, check out the full research report available on InvestingPro.

In other recent news, Sensata Technologies reported a decline in revenue for the first quarter of 2025, with figures dropping to $911 million from $1,070 million the previous year. Despite this, the company’s adjusted earnings per share (EPS) exceeded expectations, reaching $0.78, which surpassed midpoint guidance by $0.07. Sensata Technologies also saw a 35% increase in free cash flow year-over-year, reaching $87 million. In a separate development, Sensata’s shareholders approved several key resolutions at the company’s Annual General Meeting, including the election of directors and the ratification of Deloitte & Touche LLP as the independent auditor.

Additionally, Sensata Technologies announced a change in its executive team with Andrew Lynch stepping in as interim Chief Financial Officer, following the departure of Brian Roberts. Analysts at TD Cowen maintained a Buy rating on Sensata’s stock, setting a price target of $45. Meanwhile, Dynapower, a subsidiary of Sensata Technologies, launched its new MV Integrated PowerSkid™, aimed at medium-voltage applications, signaling a continued focus on innovation in energy solutions. These developments reflect Sensata’s ongoing strategic and operational adjustments amidst a challenging market environment.

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