We Like Sensata's Performance Against Tough End-Market Conditions and Maintain $71 FVE

We are maintaining our $71 fair value estimate for narrow-moat Sensata Technologies after the company reported third-quarter results at the high end of guidance and above our expectations. We believe that the firm is on track to reach its full-year targets and are impressed by its ability to navigate supply chain challenges, foreign-exchange headwinds, and component cost inflation thus far. We believe the headwinds are transitory in nature, as observed with some macro factors improving this quarter, and view the shares as undervalued and attractive to long-term investors. We hold our long-term thesis that Sensata is well positioned to achieve substantial growth against the backdrop of accelerated electric vehicle production.