ST - Sensata Technologies TE Connectivity cut to Hold at Stifel

Sensata Technologies ( NYSE: ST ) and TE Connectivity ( NYSE: TEL ) were downgraded at Stifel on valuation and macro concerns.

Equity analyst Matthew Sheering explained that the year to date run for both names has balanced the risk/reward for each stock. As such, he stepped to the sidelines on both names, downgrading from Buy to Hold.

“We attribute the sharp rise in price to expectations of improving auto demand and content growth over the next two years, offsetting weakness in certain industrial and consumer markets,” Sheering wrote in a note on Sensata Technologies. “At this point, with shares trading within its historic trading range, we believe most of the good news is priced in. Given continued macro risk and lack of a significant positive catalyst on the horizon, we believe shares are now fairly valued.”

He maintained a $55 price target on Sensata and a $130 price target on TE Connectivity alongside the downgrades. Shares of both companies marked modest premarket declines.

Read more on TE Connectivity’s recent earnings report .

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