TD Cowen analysts upgraded shares of TE Connectivity (NYSE:TEL) to Outperform from Market Perform in a note Friday, raising the price target to $140 from $115 per share.
They told investors that the firm expects to see positive revenue inflections for the company soon.
"The number of known unknowns is shrinking. Auto strike already in effect and TEL less US exposed," the analysts wrote.
"TEL's transportation segment is ~60% of sales but is globally diverse and we estimate the US is closer to 8% of sales, with Europe and Asia both over 2x that size. While a strike of any kind is a negative, TEL's relative exposure will help minimize NT impact," they explained.
Furthermore, the TD Cowen analysts said, "weakness in markets like industrial equipment, appliance, and data/devices known and modeled - further downside possible but wouldn't come with 'shock factor.'"
The firm believes the secular electrification story remains in place and noted the company's shares are trading at just off their five-year relative valuation lows vs. key competitor APH.