Cars and Smartphones Drive Electronic Components Sector Higher in 2014: A Wall Street Transcript Interview with Amit Daryanani, Research Analyst at RBC Capital Markets

Wall Street Transcript

67 WALL STREET, New York - October 18, 2013 - The Wall Street Transcript has just published its Electronic Components Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs, Equity Analysts and Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Mobile Device Consumer Demand - Mobile Trends in Emerging Markets - Smartphone Operating Systems - Outsourcing and Offshoring Trends - Electronics Manufacturing Supply Chain - Automotive, Data Center and Mobile Spending

Companies include: Tyco Electronics, Ltd. (TEL), Apple Inc. (AAPL), Jabil Circuit Inc. (JBL), Flextronics International Ltd. (FLEX), Google Inc. (GOOG), Amphenol Corporation (APH), Molex Inc. (MOLX), Microsoft Corporation (MSFT) and many others.

In the following excerpt from the Electronic Components Report, an expert analyst discusses the outlook for the electronic components sector and his top picks for investors:

TWST: Let's start with the big picture. What are the overarching themes you are watching in the electronic component space?

Mr. Daryanani: The three big themes that we see playing out in the electronic supply chain or the tech supply chain sector are, one, the automotive markets continue to perform rather well and should be a sustained tailwind, probably not just for the back half this year but also throughout 2014. The improving macro environment that has been boosting the auto production and auto demand should continue to help companies within electronic supply chain. Specifically, connector and sensor companies like TE Connectivity (TEL) and Sensata Technologies (ST) are poised to benefit from that trend.

The second thing I would point out in terms of a theme would be multiple new smartphone and tablet launches that should happen in the back half of this year, especially with Apple (AAPL) with the 5S and 5C coming out and hopefully the tablet refreshes that follow that. I think that should provide a nice tailwind of supply chain, which will also help that ecosystem. Jabil (JBL) would be top of mind on that one. Flextronics (FLEX) has some decent content there, not so much on the Apple side, but Flex does have production content on the Moto X with Google (GOOG) and also Xbox on the gaming side. So I'd say back half, new product launches both in terms of smartphones and gaming consoles should help guys like Jabil and Flextronics.

The third trend is as the macro continues to stabilize, we do think most of the enterprise networking-centric companies will see a more stable and improved performance in the back half and...

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