Core Viewpoint - Morgan Stanley has revised its earnings forecast for Sensata Technologies (00425) upwards for 2025 and 2026 by 13% and 12% respectively, following a recovery in US automotive production, while maintaining an "Overweight" rating and raising the target price from HKD 25 to HKD 40, corresponding to a projected P/E ratio of approximately 13.5 times for 2026 [1] Group 1 - Morgan Stanley had previously lowered Sensata's earnings forecast by 12% in April due to uncertainties surrounding US tariffs and potential weakness in automotive production [1] - The expected US automotive production has rebounded from its lowest point, prompting the upward revision of earnings forecasts [1] - Sensata's stock price has increased by 130% year-to-date, significantly outperforming the Hang Seng Index, which rose by 26% during the same period [1] Group 2 - The increase in Sensata's stock price is attributed to improved liquidity in the Hong Kong stock market, the company's resumption of dividend payments, and better-than-expected trends in European electric vehicle sales [1] - For the first half of the year, Sensata reported an 11% increase in revenue and approximately 20% growth in earnings, which aligns well with the company's guidance and market expectations [1]