Sensata Shares Still Attractive Even Through Supply Constraints; $75 Fair Value Estimate

We consider shares of narrow-moat Sensata Technologies to be attractively priced, and we highlight it as one of our top picks. Sensata should continue to be a long-term beneficiary of greater content in electrified, autonomous, and connected vehicles. In the near term, the company has performed well in recent quarters, and we expect content growth to lead to outperformance over the automotive and heavy vehicle markets even amid ongoing supply constraints in 2021. We reiterate our $75 fair value estimate.