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Investing.com - CFRA has raised its price target on Adient (NYSE:ADNT) to $22.00 from $20.00 while maintaining a Hold rating on the automotive seating supplier. Currently trading at $22.88, InvestingPro analysis suggests the stock is undervalued, with 6 analysts recently revising their earnings estimates upward.
The research firm increased its adjusted earnings per share estimates for the company to $1.95 from $1.85 for fiscal year 2025 and to $2.20 from $2.00 for fiscal year 2026, following Adient’s slight earnings miss but higher guidance for FY25.
CFRA’s new price target is based on a fiscal year 2026 price-to-earnings ratio of 10.0x, which represents a discount to Adient’s historical multiples that the firm considers justified.
The research firm acknowledged that Adient’s management has successfully implemented strategic initiatives including asset sales, debt refinancing, and tariff impact mitigation, noting that shares have more than doubled from their early April lows.
CFRA expressed concern that Adient’s seating products face greater exposure to competition and global production rates compared to suppliers in higher-growth segments like autonomous driving software or electrification, with 60% of the company’s FY24 net sales coming from plants located outside the United States.
In other recent news, UBS has adjusted its price target for Adient to $26.00, up from the previous target of $25.00. The investment bank continues to hold a Neutral rating on the company. This adjustment comes as UBS acknowledges Adient’s ongoing solid business performance. Additionally, UBS highlighted that Adient is likely to benefit from the trend of manufacturing reshoring to the United States. These developments reflect the investment bank’s assessment of the company’s current market position. Investors might find this information useful when considering Adient’s potential for future growth.
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