Analysts at Berenberg Bank increased their price target on Teledyne Technologies Incorporated (NYSE:TDY) to $570 from $565 as they believe the stock pullback on broader supply chain concerns offers an attractive setup into Q3.

According to the brokerage the recent weak corporate commentary across industrials coupled with FLIR acquisition integration risk has caused the company’s multiple to de-rate since May. However, recent order trends suggest the company’s guidance is quite conservative, in the brokerage view, and the company can even exceed expectations.

The company’s execution track record and unique position as both a supplier and customer in the semis industry also provide the analysts with confidence in its ability to navigate supply challenges.

Analysts at Berenberg Bank believe the market has yet to fully appreciate the TDY/FLIR combination, and they expect the stock to re-rate as synergies materialize and the company de-levers.