TE Connectivity Earnings: Our Valuation Intact With Solid Performance Against End Market Weakness

We maintain our $135 per share fair value estimate for narrow-moat TE Connectivity after its March quarter results fit our expectations. Our long-term thesis is intact. TE’s automotive demand is holding steady to start the year, reflecting stable auto production and a continued mix shift toward electric vehicles. Industrial and telecom demand have been weaker this year, but we see guidance for communications growth next quarter as positive. TE’s profitability has remained impressive in fiscal 2024, which we credit to consolidation of the firm’s manufacturing footprint. We see shares as fairly valued.