Sensata Technologies slides as Morgan Stanley cuts to "underweight"

Pacific Industrial Co

17/09/2018 15:44

** Shares of UK-based electronic equipment maker Sensata
Technologies Holding PLC  ST.N  slid more than 7 pct early Mon
after Morgan Stanley cut to "underweight" from "equal weight"
    ** Broker cuts PT from $55 to $47, the lowest on the Street
    ** ST last down 5.7 pct at $49.74, among biggest percentage
losers on the NYSE
    ** Lead analyst Craig Hettenbach sees growing cyclical
risks, expected reductions in auto production weighing on shares
    ** Adds that rivals TE Connectivity Ltd  TEL.N  and Amphenol
Corp  APH.N  are poised to take market share even as "many
companies serving the auto market have begun to miss estimates
and lower growth expectations"
    ** On Sept 4, ST announced completion of the divestment of
its Valves business to Pacific Industrial Co Ltd  7250.T  for an
enterprise value of ~$173 mln  urn:newsml:reuters.com:*:nGNX63yWV8
    ** ST has beaten or met analyst earnings expectations in all
8 most recent qtrs, per Thomson Reuters I/B/E/S
    ** Of 18 analysts covering ST Hettenbach is now the lone
"sell," 8 rate co "buy" or stronger, 9 recommend "hold"; median
PT $59.50
    ** Today's drop pulls ST stock into negative territory for
the year, down ~4 pct so far in 2018 

 (Reporting by Stephen Culp)
 ((stephen.culp@thomsonreuters.com; 646-223-6076;))