TE Connectivity Ltd. (TEL) has authorized the repurchase of an additional $1.5 billion worth of shares under its stock buyback program. TE is a technology company that designs and manufactures connectors and sensors for several industries.
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Under the program, the company will buy back shares in the open market or through private transactions, subject to business and market conditions.
On April 21, TE Connectivity delivered solid fiscal second-quarter results. The company reported earnings of $1.57 per share, beating Street estimates of $1.48 and rising 22% year-over-year. Moreover, net sales of $3.74 billion outpaced consensus estimates of $3.52 billion and climbed 17% from the year-ago quarter. (See TE Connectivity stock analysis on TipRanks)
Following the earnings announcement, Oppenheimer analyst Christopher Glynn reiterated a Buy rating on the stock and increased the price target to $140 from $130. This implies 2.2% upside potential to current levels.
Glynn commented, “Our Outperform rating reflects our view of extending track record of long-term revenue and margin execution. TEL looks increasingly well positioned for long-term solid organic growth prospects via global positioning against secular demand expansion for high-quality connectivity assurance.”
The rest of the Street is cautiously optimistic about the stock with a Moderate Buy consensus rating based on 6 Buys and 6 Holds. The TEL average analyst price target of $145.64 implies 6.3% upside potential from current levels. Shares have increased 71.4% over the past year.
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