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Based in Thousand Oaks, California, Teledyne Technologies Incorporated (TDY) provides enabling technologies for industrial growth markets. With a market cap of $20.2 billion, the company serves aerospace and defense, factory automation, environmental monitoring, electronics design and development, oceanographic research, medical imaging, and pharmaceutical research markets.
Shares of this defense and aerospace industry supplier have significantly underperformed the broader market over the past 52 weeks. TDY has gained 1.9% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 24.8%. In 2024, shares of TDY are down 4.6%, compared to SPX’s 17.6% gain on a YTD basis.
Zooming in further, TDY’s underperformance becomes more evident when compared to the S&P 500 EW Technology Invesco ETF’s (RSPT) 25.2% gain over the past 52 weeks and nearly 13% return on a YTD basis.
Shares of TDY rose 3.7% on Jul. 24 after the company reported Q2 profit of $4.58 per share, surpassing the consensus estimates by 2%. This was driven by higher sales in marine instrumentation and aerospace and defense electronics. The company’s positive growth outlook for the year further boosted investor confidence, overshadowing a slight miss in revenues.
However, for the current fiscal year, ending in December, analysts expect TDY’s EPS to decline 1.5% year over year to $19.40.The company’s earnings surprise history is mixed. It beat the consensus estimates in three of the last four quarters while missing on another occasion.
Among the eight analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on five “Strong Buy” ratings, one “Moderate Buy,” and two “Holds.”
The configuration is slightly more bullish than three months ago, with four analysts suggesting a “Strong Buy.”
On Jul. 24, CFRA maintained a “Buy” rating on Teledyne Technologies and raised the price target to $460, citing strong earnings, steady margins, and anticipated recovery in sales despite recent declines in the digital imaging and engineered systems segments.
The mean price target of $471 represents a premium of 10.7% to TDY’s current levels. The Street-high price target of $520, implies a potential upside of 22.2% from the current price.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
