Bank of America Downgrades TE Connectivity (TEL)
Bank of America reported on Wednesday that it has lowered its rating on technology company, TE Connectivity Ltd. (TEL).
The firm has downgraded TEL from “Buy” to “Neutral,” and has maintained a $43 price target. This price target suggests a 4% increase from the stock’s current price of $41.19.
Wells Fargo analyst Wamsi Mohan commented, “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 shares were down 20 cents, or -0.48% during Wednesday morning trading. The stock has increased 20% in the past year.
The Bottom Line
Shares of TE Connectivity Ltd. (TEL) have a 1.74% yield, based on Tuesday’s closing price of $41.41.
TE Connectivity Ltd. (TEL) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
Get FREE Dividend Tips, Updates & MoreWe respect your privacy
- Powerful dividend insights sent every weekday morning
- Gain instant access to actionable investing tips
- Strategically grow your portfolio’s profitability