Truist cuts TE Connectivity stock price target on datacenter concerns

The market is treating TEL like a “good enough” industrial that is no longer entitled to a premium multiple for AI adjacency. That’s the right lens: if datacenter networking revenue is flattening just as sell-side enthusiasm pegs it as the next growth leg, the stock can derate faster than fundamentals can reaccelerate, especially after a prior run-up. The key second-order issue is that TE’s mix is still tied to capex budgets that are becoming more selective, so even modest order improvement may not translate into multiple expansion until customers prove the next wave is not just inventory digestion.

The contrarian point is that the selloff may have already priced in a more severe deceleration than the business is actually seeing. A higher EPS estimate alongside a lower target tells you the debate is not near-term earnings quality but terminal growth assumptions; if management prints even one quarter of sequential improvement in scale-out or optics, the stock could re-rate sharply because positioning is likely lighter after the drop. That creates a tactical asymmetry: fundamentals do not need to reaccelerate dramatically, only to stop disappointing.

For EVR, the cleaner read is that its upside is tied less to quarter-specific performance than to how much M&A and issuance activity the market expects over the next 3–6 months. If broader risk sentiment stays choppy, advisory and underwriting momentum can lag even when absolute deal activity is healthy, so the stock may remain a hostage to macro headlines rather than company execution. The consensus is probably underweighting how quickly transaction-sensitive financials can inflect if rates stabilize and boards regain confidence.