Core Viewpoint - Telenor Group has agreed to sell its 50% stake in Allente to Viaplay for SEK 1.1 billion, marking a strategic shift as Allente aligns better with Viaplay's strategy than Telenor's [1][2][3] Group 1: Transaction Details - The sale involves a total consideration of SEK 1.1 billion for Telenor's stake in Allente, which has an enterprise value of SEK 3.1 billion [1][3] - Allente, formed in May 2020 from the merger of Canal Digital and Viasat, serves residential and business customers across the Nordics [1] - The transaction is expected to close within six to nine months, pending regulatory approvals in Norway, Sweden, and Denmark [4] Group 2: Performance and Future Outlook - Since its inception, Allente has distributed SEK 4.4 billion in dividends to its owners, demonstrating strong financial performance [3] - Both Telenor and Viaplay express confidence in the future of Allente under Viaplay's full ownership, aiming to enhance its offerings and customer experiences [2][4]

Company Overview - Ouster, Inc. (OUST) shares increased by 14.5% to $28.3 in the last trading session, with a notable trading volume, and have gained 24.2% over the past four weeks [1] - Ouster is experiencing growth due to the rising adoption of LiDAR technology in various sectors including automotive, industrial, robotics, and smart infrastructure [1] Financial Performance - Ouster is projected to report a quarterly loss of $0.48 per share, reflecting a year-over-year change of +9.4%, with expected revenues of $34 million, up 26% from the previous year [2] - The consensus EPS estimate for Ouster has remained unchanged over the last 30 days, indicating that stock price movements may not sustain without trends in earnings estimate revisions [3] Industry Comparison - Ouster is part of the Zacks Electronics - Miscellaneous Components industry, where TE Connectivity (TEL) has a consensus EPS estimate of $2.07, showing a year-over-year change of +8.4% [3][4] - TE Connectivity's stock finished the last trading session down 0.4% at $175.44, with a return of 6.5% over the past month [3]

Market Overview - The broader equity markets have shown a steady uptrend as investors remain optimistic despite tariff threats from President Trump on 14 countries, including Japan and South Korea [1] - Investors are hopeful for a mutually beneficial solution to avoid market turmoil as they look forward to a busy earnings season [1][2] Trade Relations - Positive discussions between U.S.-China diplomats regarding trade tariffs and potential peace talks between U.S. officials and Iran have contributed to market stability [2] - Investors are awaiting clarity on interest rate cuts with inflation data expected to be released soon [2] Investment Strategy - Investors are advised to focus on "cash cow" stocks that provide higher returns, emphasizing the importance of attractive efficiency ratios like return on equity (ROE) [3] - High ROE indicates effective reinvestment of cash at a high rate of return, distinguishing profitable companies from less efficient ones [4][5] Stock Screening Parameters - Stocks are screened based on criteria including cash flow greater than $1 billion and ROE exceeding industry averages [6] - Additional metrics include Price/Cash Flow lower than industry average and Return on Assets (ROA) greater than industry average [7] Featured Stocks - **Walt Disney**: Long-term earnings growth expectation of 11.8% with a trailing four-quarter earnings surprise of 16.4% on average, Zacks Rank 2 [8][9] - **TE Connectivity**: Long-term earnings growth expectation of 9.8% with a trailing four-quarter earnings surprise of 3.3% on average, Zacks Rank 2 [10][11] - **Fortinet**: Long-term earnings growth expectation of 13.4% with a trailing four-quarter earnings surprise of 23.8% on average, Zacks Rank 2 [12][13] - **Banco Bilbao**: Long-term earnings growth expectation of 5.5% with a trailing four-quarter earnings surprise of 6.3% on average, Zacks Rank 1 [13][14] - **Colgate-Palmolive**: Long-term earnings growth expectation of 5.2% with a trailing four-quarter earnings surprise of 4% on average, Zacks Rank 2 [14][15]

Investment Ratings - Amphenol (APH) is rated as Buy with a target price of $115 based on a 35x P/E multiple for F24M EPS [1][49][51] - TE Connectivity (TEL) is upgraded to Buy with a target price of $200 based on a 20x P/E multiple for F24M EPS [1][57][60] Core Insights - The report maintains a constructive outlook on the connector industry, driven by solid demand fundamentals and increased electrification across various end markets [9][58] - Recent stabilization in automotive market production and improving industrial demand are key factors for the upgrade of TEL to Buy [1][9] - Amphenol is expected to benefit from AI-led demand and a balanced end market exposure, while TEL is positioned for margin expansion due to improved industrial demand [1][33][58] Summary by Sections Amphenol (APH) - APH is a leading manufacturer in the connector market with a diversified end market exposure, including industrial (23%), automotive (17%), and IT data communications (37%) [49][50] - The company is expected to see above-market sales and earnings growth driven by technology hardware spending and AI infrastructure [50][51] - The target price of $115 reflects a premium to its historical P/E multiple, indicating strong growth potential [51][52] TE Connectivity (TEL) - TEL is the largest electronics connector company, with a significant portion of its revenue (40%) coming from the automotive sector [56][57] - The company is expected to benefit from stabilizing automotive trends and improving industrial demand, with a strong balance sheet supporting its growth [58][60] - The target price of $200 is based on a valuation that aligns with its long-term median P/E, reflecting its market position and growth prospects [60] Market Trends - The connector market is anticipated to show continued momentum in 2025, supported by growth in IT Datacom and industrial automation spending [58] - The automotive market is stabilizing, which is crucial for TEL as it represents a significant revenue source [9][58] - AI demand is expected to ramp up, particularly in the data center segment, which is beneficial for both APH and TEL [15][58]

Core Viewpoint - Telenor has announced the acquisition of GlobalConnect's consumer business in Norway for NOK 6.0 billion, aiming to strengthen its position in the Norwegian fibre market [1][3]. Group 1: Strategic Importance - The acquisition includes fibre infrastructure and approximately 140,000 fibre customers, serving as a key component in Telenor's long-term strategy to enhance its fibre footprint in Norway [3][5]. - Telenor's market share of fibre subscriptions is expected to increase from 22% to 29% as a result of this transaction, based on 2024 NKOM data [7]. Group 2: Customer and Employee Benefits - Customers will gain access to a variety of services, including advanced digital security and premium home networks, supported by Telenor's high-quality connectivity [4][5]. - Telenor emphasizes its commitment to continued investments in fraud prevention, secure WiFi, and digital protection, enhancing the overall customer experience [4]. Group 3: Financial Aspects - GlobalConnect's consumer portfolio generated revenues exceeding NOK 0.6 billion in 2024, with Telenor expecting an EBITDA of around NOK 0.3 billion in each of the first two years post-integration [8]. - Annual post-integration cost savings are estimated at approximately NOK 0.15 billion, driven by efficiencies in sales, operations, and maintenance [9]. - Integration capital expenditures are projected to be around NOK 0.3 billion from 2026 to 2028, primarily incurred in the first two years [9].

Group 1 - Telenor Group will announce its results for the second quarter of 2025 on July 18, 2025, at 0900 CET / 0800 UKT [1] - The results presentation will be available via Webcast only, with no live Q&A participation [1] Group 2 - A separate press meeting for media will take place at 10.30 CET in Telenor Expo, Fornebu [2] - The media session will be conducted in Norwegian [2] - RSVP for the media session can be done via email to thomas.midteide@telenor.com [2]

Group 1 - TE Connectivity plc announced a quarterly cash dividend of $0.71 per ordinary share, payable on September 12, 2025, to shareholders of record on August 22, 2025 [1] - The company is a global industrial technology leader focused on creating a safer, sustainable, productive, and connected future [2] - TE Connectivity offers a wide range of connectivity and sensor solutions that support various sectors including transportation, energy networks, automated factories, data centers, and medical technology [2] Group 2 - The company employs over 85,000 individuals, including 9,000 engineers, and operates in approximately 130 countries [2] - TE Connectivity emphasizes the importance of connectivity in its operations, encapsulated in the motto "EVERY CONNECTION COUNTS" [2]

Group 1: Zacks Premium and Style Scores - Zacks Premium offers various tools for investors, including daily updates on Zacks Rank and Industry Rank, access to the Zacks 1 Rank List, Equity Research reports, and Premium stock screens to enhance investment confidence [1][2] - Zacks Style Scores are complementary indicators that rate stocks based on value, growth, and momentum methodologies, helping investors identify stocks likely to outperform the market in the next 30 days [2][3] Group 2: Style Score Categories - The Value Score focuses on identifying undervalued stocks by analyzing ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow [3] - The Growth Score assesses a company's financial strength and future outlook by examining projected and historical earnings, sales, and cash flow [4] - The Momentum Score evaluates trends in stock price and earnings outlook, using factors like one-week price change and monthly earnings estimate changes to identify high-momentum stocks [5] - The VGM Score combines the three Style Scores to highlight stocks with attractive value, strong growth forecasts, and promising momentum, serving as a useful indicator alongside the Zacks Rank [6] Group 3: Zacks Rank and Performance - The Zacks Rank is a proprietary stock-rating model that leverages earnings estimate revisions to assist investors in building successful portfolios [7] - Stocks rated 1 (Strong Buy) have historically produced an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [8] - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 that also have Style Scores of A or B to maximize returns [9] Group 4: TE Connectivity Overview - TE Connectivity is a global technology company specializing in connectivity and sensor solutions across various industries, including automotive, aerospace, defense, energy, and medical, with operations in over 130 countries [11] - TE Connectivity holds a Zacks Rank of 3 (Hold) and has a VGM Score of B, indicating potential for growth [11] - The company is projected to achieve year-over-year earnings growth of 9.1% for the current fiscal year, with upward revisions in earnings estimates from six analysts in the last 60 days [12]

Core Viewpoint - TE Connectivity is well-positioned to benefit from the increasing demand for industrial automation and robotics, leading to a 'Buy' rating for the stock [1] Company Overview - TE Connectivity (NYSE: TEL) is an industrial technology manufacturer that specializes in connectivity and sensor solutions for transportation and industrial markets [1]

Financial Data and Key Metrics Changes - The company reported total revenue of approximately $17 billion, with a significant increase in AI-related revenue from $300 million last year to an expected over $700 million this year [8][9] - Operating margins are currently above 19%, with automotive business margins running at 20% [48][49] - The company aims for both business segments to achieve margins above 20% in the future [50] Business Line Data and Key Metrics Changes - The industrial segment, which includes high-speed connections for cloud providers, is the largest business area, contributing significantly to revenue growth [8][10] - In the transportation segment, automotive is the largest business, with about 50% of revenue generated in Asia, showing a 16% growth in the last quarter [12][13] - The company has seen a content increase in electric vehicles (EVs), with average content per vehicle rising from $60 pre-COVID to the low $80s today [17][19] Market Data and Key Metrics Changes - The company has a strong presence in Asia, with 70% of its operations outside the United States, which helps mitigate tariff impacts [31][32] - The automotive market in Asia is experiencing robust growth, while the Western automotive market remains relatively flat [45][46] - The company is benefiting from trends in AI and energy infrastructure, with expectations for continued growth in these areas [44][68] Company Strategy and Development Direction - The company is focused on enhancing its connectivity and sensing technologies, particularly in the AI and automotive sectors [6][14] - There is an active portfolio management strategy, with a focus on improving margins and cash generation, including recent acquisitions in the energy space [56][58] - The company plans to continue investing in AI-related capacities, with capital expenditures expected to rise from $700 million to $900 million [78] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about organic growth of around 8% year-on-year, with improvements in the order book and industrial sector [42][44] - The company does not foresee significant impacts from tariffs on earnings, as they have implemented pricing strategies to mitigate costs [34][36] - Management noted that while there are challenges in the automotive sector, particularly in the West, the overall outlook remains positive due to strong demand in Asia [45][46] Other Important Information - The company has approximately 20 manufacturing sites globally, with a focus on local production to align with customer supply chains [31][32] - The healthcare segment is expected to grow at a high single-digit rate long-term, despite experiencing fluctuations during COVID [108][110] - The company has a strong engineering presence in China, with over 2,000 engineers focused on local design and manufacturing [103] Q&A Session Summary Question: What is the growth outlook for the automotive and industrial segments? - The company anticipates a growth rate of 4-6% above production levels in automotive, with a similar outlook for industrial segments [15][16] Question: How does the company handle pricing in response to tariffs? - The company has implemented surcharges to offset tariff impacts, passing costs along to customers while maintaining margin integrity [36][37] Question: What is the company's strategy regarding acquisitions? - The company aims for a balanced capital strategy, targeting a third of free cash flow for dividends and pursuing bolt-on acquisitions primarily in the industrial segment [57][59]