ST - Sensata's Shift To Electrification Has Hurdles Analyst Cites $16M-$20M In Restructuring Costs | Benzinga
Truist Securities analyst William Stein reiterated a Hold rating on Sensata Technologies Holding Plc (NYSE: ST), lowering the price target to $43 from $48.
The analyst writes ST is in the middle of a transition from manufacturing a broad array of sensors, mainly for the ICE portion of the automotive market, to expanding its exposure to the electrification theme while developing a software/services business.
Such transitions are more commonly conducted in private markets, and ST's execution as a public company makes it challenging for the stock to work, Stein notes.
Management cited the scaling and mix of the electrification business as a main headwind to margins, with new products expected to become accretive over three years, the ...