Bank of America Downgrades TE Connectivity (TEL)

Bank of America Downgrades TE Connectivity (TEL)

RSS

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.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

Free Updates

Join over 100,000 investors who get the latest news from Dividend.com.

Best Dividend Stocks

Looking for stocks that are poised for growth and pay solid dividends? Visit our list of the:

Best Dividend Stocks

Partner Center

Best CD Rates

Sitting on some extra cash and looking for the most current and profitable CD Rates?

Get The Best CD Rates

14 Day Free Trial

Earn more from your dividend portfolio within the next 14 days.

Sign Up Today