Aptiv stock holds Neutral rating at UBS following investor day

Investing.com - UBS maintained its Neutral rating and $94.00 price target on Aptiv PLC (NYSE:APTV) following the company’s recent investor day presentation. This target sits below the analyst high target of $109 but well above the low target of $60, with the overall analyst consensus leaning toward a Buy recommendation.

The automotive technology company outlined its strategy and 2028 targets for both RemainCo (New Aptiv) and SpinCo (EDS) during the event. UBS noted that sales targets were largely in line with analyst and investor expectations, though margin performance projections were better than anticipated. Aptiv currently maintains a "GOOD" overall financial health score according to InvestingPro data, with particularly strong marks in profitability metrics.

UBS believes the planned spin-off could create value but cautioned that the transition might be "messy" as SpinCo establishes a new investor base, potentially facing "forced" selling that could lead to choppy trading post-separation. This concern seems warranted as Aptiv’s stock has already demonstrated significant volatility, dropping 8.4% in the past week alone.

For RemainCo, UBS acknowledged management presented a "compelling equity story" focused on revenue growth, margin expansion, and diversification into non-automotive secular trends. However, the firm pointed out this transformation will take time and include mergers and acquisitions activity. Despite these challenges, Aptiv remains a prominent player in the Automobile Components industry with $20.15 billion in revenue over the last twelve months.

With Aptiv shares trading in the mid-$70s, UBS sees the current price as "a decent level for mid-term holders" with upside potential to its $94 combined price target, though the firm is maintaining a tactical approach for the time being. InvestingPro analysis suggests the stock is currently undervalued with RSI indicators pointing to oversold territory. Despite recent volatility, Aptiv has delivered impressive 25.3% year-to-date returns. For deeper insights into Aptiv’s valuation and over 10 additional ProTips, check out the comprehensive Pro Research Report available on InvestingPro.

In other recent news, Aptiv PLC reported impressive financial results for the third quarter of 2025, with earnings per share (EPS) of $2.17, surpassing the forecasted $1.80. The company’s revenue also exceeded expectations, reaching $5.2 billion compared to the anticipated $5.09 billion. Furthermore, Aptiv announced plans to spin off its Electrical Distribution Systems business into a new independent publicly traded company, with the separation expected to be completed by March 31, 2026. This move involves a preliminary registration statement filed with the U.S. Securities and Exchange Commission.

In addition, Aptiv has entered into a strategic partnership with Robust.AI to develop AI-powered collaborative robots for warehouse and industrial automation. This collaboration will leverage Aptiv’s perception portfolio and machine learning technologies alongside Robust.AI’s robotics platform. Meanwhile, Oppenheimer has maintained its Outperform rating on Aptiv, emphasizing the company’s diversification strategy and growth potential in non-automotive sectors. These developments reflect Aptiv’s strategic initiatives and financial performance in recent times.

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