Citigroup Reports on TE Connectivity

Citigroup commented on TE Connectivity TEL in a report released today. In the report, Citigroup was positive in its assessment of the company. Citigroup writes, "TEL is our highest conviction Buy rated stock & on CIRA's Top Picks Live. We believe the media & common perception is that impact in Japan will take longer to recover & these recent checks are a material new positive. As a reminder each 1m of global auto produced represents $0.03-0.04 of annual EPS and expectations for a 3m unit auto impact appears to be on track to recoup the majority of this before year end. We continue to believe TEL will also be added to the S&P500 (detailed in this report) following S&P's change in rules last year. Trading at 11x forward12 month PE with a 2% dividend yield compares to Molex at 13x and Amphenol at 16x and accordingly we find TEL valuation compelling." Citigroup presently has a Buy rating on TE Connectivity and a price target of $50. TE Connectivity closed on Thursday at $36.53.