Aptiv price target raised to $92 from $88 at Oppenheimer on EDS spinoff

Investing.com - Oppenheimer raised its price target on Aptiv PLC (NYSE:APTV) to $92.00 from $88.00 on Thursday, while maintaining an Outperform rating on the stock. The automotive technology company, currently trading at $81.61 with a market capitalization of $17.77 billion, has shown strong momentum with a 29.15% return over the past six months.

The price target increase comes as Aptiv moves forward with its EDS (Electrical Distribution Systems) spinoff, which Oppenheimer believes will unlock unrealized value in the shares amid relatively resilient global light duty vehicle sales. According to InvestingPro analysis, the company maintains a GREAT financial health score of 3.06, with liquid assets exceeding short-term obligations.

Oppenheimer sees the post-spinoff RemainCo as well-positioned to demonstrate higher growth and margins while being reframed as a diversified Industrial AI platform, with particular strength in its software platform that can be leveraged in emerging industrial AI ecosystems.

The firm expects RemainCo to receive an increased multiple that reflects both its legacy auto exposure and higher-growth industrial and software offerings.

Oppenheimer projects potential for the combined value of Aptiv to re-rate post-spinoff to a range of $95-141. This aligns with InvestingPro’s Fair Value analysis, which suggests the stock is currently undervalued while trading near its 52-week high of $82.74.

In other recent news, Aptiv PLC reported second-quarter revenue that surpassed analyst expectations, leading the company to raise its full-year outlook. Despite this positive revenue performance, the company experienced a slight miss in earnings. Following these developments, Oppenheimer raised its price target for Aptiv to $88 from $84, while maintaining an Outperform rating. The increase in the price target is attributed to Aptiv’s progress in expanding its non-light duty vehicle business and developing its AI solutions ecosystem. These recent developments have sparked interest among investors and analysts alike.

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