RBC Capital Reiterates Outperform Rating and $82 PT on TE Connectivity (TEL); 'Removal from AAPL Supplier List Immaterial'

RBC Capital analyst Amit Daryanani reiterates Outperform rating and $82 price target on TE Connectivity (NYSE: TEL) suggesting a removal from AAPL supplier list is immaterial based on management discussion.

Daryanani comments, " Although TEL has been listed as a supplier to AAPL in recent years, we think the company's omission from AAPL's most recent top supplier list should be immaterial based on our conversations with management. While we think TEL had products qualified with AAPL, we estimate revenues from AAPL were relatively immaterial, if any and TEL's removal from AAPL's supplier list shouldn't create competitive concerns nor fundamental challenges. As a reminder, TEL has exited many cyclical and lower-margin consumer devices (smartphones, tablets, PCs) products within its Data & Devices business in FY15, consistent with broader efforts (divestitures of BNS in FY15 and Circuit Protection Business in FY16) to focus on less cyclical, higher margin harsh environment end markets. Net/net: We think TEL's removal from AAPL's supplier list reflects TEL's increasing focus on harsh environment and shift away from consumer devices vs. fundamental challenges within the company. Maintain OP and $82 target."

For an analyst ratings summary and ratings history on TE Connectivity click here. For more ratings news on TE Connectivity click here.

Shares of TE Connectivity closed at $74.46 yesterday.

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