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TE Connectivity Ltd TEL

Rating as of

Morningstar’s Analysis

Valuation
Currency in USD
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1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

TE Connectivity Riding Macro Recovery Despite Supply Constraints; Shares Still Rich

Analyst Note

| William Kerwin |

Narrow-moat TE Connectivity reported fiscal third-quarter results above guidance and our expectations, and we’re bumping our fair value estimate up to $120 per share from $115 previously. TE set a quarterly sales record as it continues to benefit from a broader market recovery and cited particular outperformance in electric vehicles, cloud capital expenditures, and factory automation. We’re pleased to see continued content growth in these areas, and TE’s ability to sell into new sockets for cutting-edge applications like onboard charging and data centers is a key tenet of our narrow moat rating for the firm. We think TE is poised to close out fiscal 2021 with more double-digit year-over-year growth but shares remain rich, and investors should wait for a pullback.

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Company Profile

Business Description

TE Connectivity is the largest electrical connector supplier in the world, supplying interconnect and sensor solutions to the transportation, industrial, and communications markets. With operations in 150 countries and over 500,000 stock-keeping units, TE Connectivity has a broad portfolio that forms the electrical architecture of its end customers' cutting-edge innovations.

Contact
Muhlenstrasse 26
Schaffhausen, CH-8200, Switzerland
T +41 526336661
Sector Technology
Industry Electronic Components
Most Recent Earnings Jun 30, 2021
Fiscal Year End Sep 25, 2021
Stock Type
Employees 82,000

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