TE Connectivity Earnings: We Like Execution and Profitability Against Mixed Demand Environment

We maintain our $145 fair value estimate for shares of narrow-moat TE Connectivity with our long-term thesis unchanged after good fiscal fourth-quarter results. TE is facing a mixed demand environment, with softer demand in automotive and industrial markets and incredible strength for its artificial intelligence portfolio. We like the firm's execution amid this mixed demand, with good outperformance over its end markets and improved profitability. We believe fiscal 2025 will continue to paint a mixed picture, but we like TE's position for the long term. We expect continued outperformance as TE benefits from ongoing growth in electric and hybrid vehicles and AI investment rises. We see shares as fairly valued.