TT Electronics Shares Downgraded as Short-Cycle Names to ‘Feel the Pain’

Barclays analyst Vlad Sergievskii downgraded TT Electronics (LON: TTG) from Overweight to Equal Weight in a note Thursday, cutting the bank’s price target for the stock from 100p to 90p. 

Sergievskii pointed to a challenging macroeconomic backdrop and escalating trade tensions as reasons for the downgrade.

The Barclays analyst told investors that the sector backdrop was “already subdued,” with weak global industrial activity and limited capital expenditure growth outside hyperscaler investment. 

The firm now expects companies like TT Electronics to be among the first to “feel the pain” from the re-escalation of tariffs, particularly following recent trade policy announcements from U.S. President Donald Trump.

Barclays does not expect a swift recovery either, noting that the current downturn is unlikely to follow a typical “V-shaped” pattern seen in past cycles. 

The downgrade reflects a more cautious stance on the broader European capital goods sector, where Barclays has revised ratings amid rising geopolitical and macroeconomic uncertainty.

TT Electronics shares have struggled over the past year, losing more than 29% year-to-date and nearly 55% over the last 12 months. The stock is currently trading significantly below its 12-month high.

According to TradingView data, the consensus among analysts is lukewarm. Four rate the stock a Hold, while two recommend a Buy. The average price target of 111p implies a potential upside of 48% from current levels.