TEL Should I Buy
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BUY now. TEL is pulling back into a key support zone (~222–223) after very strong 2026/Q1 results and a clear wave of bullish analyst actions with high price targets ($270–$306). Options positioning is decisively call-skewed, suggesting traders are leaning bullish into the next move. While near-term technicals are still bearish (negative MACD, weak momentum) and insiders have been selling heavily, the risk/reward at current support favors an impatient buyer looking for a near-term rebound rather than waiting for a perfect trend reversal.
Price/Trend: TEL is down in the latest session (regular -1.54%, post -0.35%) and is trading near S1 support (S1=222.551; post-market ~222). Momentum: MACD histogram is negative (-1.237) and worsening, which signals the downtrend pressure is still present. RSI(6)=37.784 is weak (approaching oversold but not washed out), consistent with a pullback that may be close to stabilizing rather than a confirmed reversal. Moving Averages: Converging MAs indicate compression/transition; not a clean uptrend signal yet. Levels to watch: Immediate support is 222.55, then 217.37 (S2). A rebound confirmation would be a reclaim of the pivot 230.93, then resistance at 239.31 and 244.49. Pattern-based bias: Similar candlestick-pattern stats imply a modest positive drift (70% chance of +1.46% next day; +0.74% next week; +1.59% next month), supporting a tactical buy at support.
Intellectia Proprietary Trading Signals
Strong growth quarter (2026/Q1): revenue +21.72% YoY, net income +42.05% YoY, EPS +44.57% YoY, and gross margin improvement (+5.08% YoY) reinforces an earnings momentum narrative.
AI/datacenter and grid exposure repeatedly highlighted by analysts as favorable secular tailwinds; multiple firms raised targets and reiterated Buy/Overweight views.
Debt refinancing/notes offering news is operationally constructive (proceeds aimed at repaying maturing debt), generally reducing near-term refinancing risk and signaling healthy capital markets access.
Options market is aggressively call-skewed, suggesting traders are leaning bullish into the next move.
Technical momentum is still bearish: MACD is negative and expanding downward; the stock has not reclaimed the pivot (230.93). A break below ~222.55 opens downside risk toward ~217.
Insider activity: insiders are selling and the selling amount increased 448.16% over the last month—often a near-term sentiment overhang.
Hedge funds are neutral (no strong smart-money accumulation signal over the last quarter).
Some analyst caution remains (e.g., Hold/Equal Weight ratings persist), and China EV demand/incentives commentary suggests pockets of cyclical uncertainty even as AI exposure improves.
Latest quarter: 2026/Q1. Growth was strong across key lines: Revenue 4.669B (+21.72% YoY), Net Income 750M (+42.05% YoY), EPS 2.53 (+44.57% YoY). Profitability also improved with Gross Margin at 37.25 (+5.08% YoY). Overall, the quarter supports an accelerating earnings profile rather than a deteriorating one, aligning with the bullish analyst upgrades/target raises.
Recent trend: Clearly improving. Multiple firms raised price targets after the fiscal Q1 report and reiterated bullish ratings (Barclays Overweight to $302; BofA Buy to $290; Goldman Buy to $306). Oppenheimer upgraded to Outperform with a $270 target, explicitly citing favorable datacenter and electric grid dynamics. More cautious views exist (Truist Hold ~$244; Wells Fargo Equal Weight ~$249), mainly pointing to near-term pockets like China EV demand, but the dominant direction is upward targets and stronger conviction on AI/energy infrastructure tailwinds.
Wall Street pros: (a) Strong organic growth and margin/EPS leverage, (b) AI/datacenter + electrification/grid exposure, (c) perception of inexpensive relative value vs peers cited by Barclays. Cons: (a) Transportation/China EV demand variability, (b) stock currently in a technical pullback, (c) insider selling pressure.
