Update shared on 05 Dec 2025
Fair value Increased 0.087%Analysts have nudged their price target on TE Connectivity slightly higher to approximately $270.47 per share from about $270.24. This reflects modestly improved expectations for long term revenue growth, profit margins, and earnings multiples, despite a slightly higher discount rate.
What's in the News
- TE Connectivity issued guidance for the first quarter of fiscal 2026, targeting approximately $4.5 billion in sales, up 17 percent reported and 11 percent organically year over year, with expected GAAP EPS from continuing operations of about $2.33, up 33 percent (Corporate guidance).
- The company updated investors on its long running share repurchase program, disclosing that between June 28, 2025 and September 26, 2025 it bought back 2,183,188 shares, or 0.74 percent of shares outstanding, for $440.17 million, bringing total repurchases since 2007 to 268,076,407 shares, or 68.78 percent, for $17.86 billion (Buyback tranche update).
- Mouser Electronics highlighted expanded availability of TE Connectivity products, now offering more than 750,000 TE parts, including over 75,000 in stock, featuring high speed GEMnet multi gig differential connectors, FAKRA RF connector systems, MATE AX miniaturized coaxial connectors, and RT Series N EMC and RFI chokes for applications ranging from automotive Ethernet and ADAS to EV charging and industrial power systems (Client announcement with Mouser Electronics).
Valuation Changes
- The fair value estimate has risen slightly to approximately $270.47 per share from about $270.24 per share, reflecting modestly improved long-term assumptions.
- The discount rate has increased marginally to about 9.25 percent from roughly 9.21 percent, implying a slightly higher required return.
- Revenue growth has risen slightly to around 8.37 percent from about 8.26 percent, indicating a modestly stronger long-term growth outlook.
- The net profit margin has ticked up fractionally to roughly 16.96 percent from about 16.95 percent, suggesting a small improvement in expected profitability.
- The future P/E has edged down slightly to about 26.68x from roughly 26.74x, indicating a modestly lower valuation multiple applied to future earnings.
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