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Sensata (ST), NIRA Tie Up for TDM Solution to Boost Tire Health

Sensata Technologies ST recently collaborated with NIRA Dynamics AB to develop an accurate and solid tire Tread Depth Monitoring (TDM) ‘virtual sensor’ system for automotive OEMs.This will boost tire health and enhance vehicle safety, efficiency and uptime.

Established in 2001, NIRA is an industry-leading provider of indirect Tire Pressure Monitoring Systems. NIRA delivers cost-efficient safety and navigation solutions for the global vehicle industry, along with big data services for the road maintenance industry.

With the global auto sector battling several market disruptions, one of the few things that remain constant is the need for tires. Ensuring that those tires are in good health is the key to safety, efficiency and vehicle uptime. In fact, per a report by Mordor Intelligence, the automotive tire pressure monitoring system market, which was valued at more than $5 billion in 2020, is expected to reach $12 billion by 2026, at a CAGR of more than 13.3%.

Amid this scenario, the cooperation between NIRA and Sensata comes as a boon. Leveraging NIRA’s decades of experience in vehicle data cloud services with Sensata’s Tire Pressure Monitoring System, infrastructure and expertise in automotive sensors, this collaboration will offer vehicle manufacturers additional insights and information for customers without adding extra hardware to the vehicle.

Through this partnership, Sensata's TDM solution, powered by NIRA, will provide the necessary data to allow auto manufacturers and their customers to precisely track and take timely action with regard to their tire's health. This solution will offer OEMs, drivers and fleets prompt alerts when tires have worn to unsafe levels and need servicing. This will improve vehicle safety and create more driver awareness about the quality of tires to reduce the number of tire-related accidents. In fact, the TDM solution will add new safety and maintenance capabilities to Sensata’s existing tire products.

The virtual sensor system is a new, state-of-the-art technology that collects and combines data from multiple existing sensors on a vehicle to provide accurate information about tire depreciation. This virtual system can be integrated into existing Electronic Control Units and is built to work with many combinations of tire and vehicle designs. Vehicle manufacturers can quickly implement the solution across vehicle platforms without any customization.

Prospects Bright

Known as the leading provider of mission-critical solutions, Sensata has a diversified portfolio of personalized and unique sensor-rich applications, from automotive braking systems to aircraft flight controls. These sensors are specifically designed to address complex engineering and operating performance requirements that help customers solve significant challenges in the industrial, heavy vehicle, off-road and aerospace industries.

Sensata also has a rich portfolio of high-voltage protection and battery management systems. Its sensing solutions business has a strong product portfolio and greater scale to capitalize on attractive opportunities in the multi-billion global automotive sensor market.

Moreover, the company believes that its growing portfolio and accretive customer base, thanks to suitable acquisitions like the recent buyout of Elastic M2M, are driving its long-term success across diverse markets.

Recently, Sensata launched the Sensata | Xirgo OTAC (Over the Air Charging) Tracker Solution. This charging solution is being developed by Sensata | Xirgo in collaboration with Ossia, which is the first-of-its-kind Internet of Things (IoT) asset tracking solution that allows mass charging of multiple IoT asset trackers without the need for wires, cables or charging pads. It is a turnkey solution for the fleet industry, making it easier for them to efficiently charge, store and access up to 400 compatible asset trackers per charging station at one time.

Sensata currently has a Zacks Rank #3 (Hold).

Shares of ST have lost 16.6% compared with the industry’s fall of 4.8% in the past year.

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Key Picks

Some better-ranked stocks from the broader technology space are Progress Software PRGS, Badger Meter BMI and Iridium Communications IRDM. While Badger Meter and Progress Software sport a Zacks Rank #1 (Strong Buy), Iridium carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Badger Meter has a projected earnings growth rate of 5.77% for 2022. The Zacks Consensus Estimate for Badger Meter’s 2022 earnings has been revised upward by 19 cents in the past 60 days.

Badger Meter’s earnings beat the Zacks Consensus Estimate in three of the last four quarters and met estimates once, the average surprise being 14%. Shares of BMI have lost 3% in the past year.

Progress Software has a projected earnings growth rate of 3.62% for fiscal 2022. The Zacks Consensus Estimate for Progress Software’s fiscal 2022 earnings has been revised upward by 6 cents in the past 60 days. The long-term earnings growth rate of PRGS is pegged at 2%.

Progress Software’s earnings beat the Zacks Consensus Estimate in the preceding four quarters, the average surprise being 26.8%. Shares of PRGS have lost 0.6% in the past year.

Iridium has a projected earnings growth rate of 271.43% for 2022. The Zacks Consensus Estimate for Iridium’s 2022 earnings has been revised upward by a penny in the past 90 days.

Iridium’s earnings beat the Zacks Consensus Estimate in two of the last four quarters and met estimates twice, the average surprise being 39.4%. Shares of IRDM have dipped 1.9% in the past year.

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Sensata Technologies Holding N.V. (ST) : Free Stock Analysis Report

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