ST - Sensata: Still Frustrating But New CEO And Elliott's Involvement Could Finally Drive Change
2024-06-12 17:56:45 ET
Summary
- Sensata Technologies has been hit by downturns in multiple end-markets, but underperformance is a multiyear issue and has prompted activist investor involvement at the company.
- Weak industrial and HVAC markets in 2024, coupled with an unwelcome EV content shift, pose near-term challenges for Sensata, while long-term capital allocation decisions haven't panned out.
- New leadership at Sensata could lead to more substantial changes in the company's strategic direction, including significant divestitures and a renewed focus on its core business.
Sensata Technologies ( ST ) has been an exasperating company to follow. Although there aren’t really great “apples to apples” comps for the company, it doesn’t really matter if you evaluate it as an auto supplier, an industrial, or some sort of technology-driven hybrid. By any metric, the shares have been a notable underperformer over the last five years, not to mention the year and a half or so since my last update on the company....
Sensata: Still Frustrating, But New CEO And Elliott's Involvement Could Finally Drive Change