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Investing.com - TD Cowen raised its price target on Autoliv, Inc. (NYSE:ALV) to $133.00 from $106.00 while maintaining a Buy rating on the automotive safety systems supplier. The stock, currently trading near its 52-week high of $118.98, has delivered an impressive 22.37% return year-to-date. According to InvestingPro data, the company appears slightly undervalued based on its Fair Value calculations.
The firm cited higher estimates and target multiples following Autoliv’s second-quarter results, noting that gross operating margins are expected to increase in the second half of the year, including in China. The company maintains a GOOD financial health score on InvestingPro, with a solid track record of maintaining dividend payments for 29 consecutive years.
TD Cowen increased its target multiples to 13.5x 2025 P/E and 8.5x EV/EBITDA, up from previous targets of 12.0x and 7.5x respectively, reflecting potential earnings upside, an improving China gross operating margin outlook, and greater confidence in the company’s path to achieving a 12% margin.
The research firm also pointed to "recent capital allocation actions" as a factor in its more bullish outlook, while maintaining that fourth-quarter industry light vehicle production assumptions appear conservative.
TD Cowen expressed continued optimism about Autoliv’s near-term risk/reward profile and sees a path for sustained double-digit EPS growth beyond 2025, supported by what it described as "unique self-help drivers."
In other recent news, Autoliv, Inc. reported impressive second-quarter financial results, with revenue reaching $2.71 billion and earnings per share of $2.21. These figures exceeded analysts’ expectations of $2.64 billion in revenue and $2.07 earnings per share. Mizuho (NYSE:MFG) responded by raising its price target for Autoliv to $130, maintaining an Outperform rating, while Jefferies reiterated a Buy rating with a $140 price target. Autoliv’s resilience in the quarter was highlighted, with a minor upgrade to its guidance despite operational volatility. The company also announced a shareholder return strategy, including a $2.5 billion stock buyback program starting in July 2025 and a 21% increase in its quarterly dividend. At its recent Capital Markets Day, Autoliv projected a significant increase in battery electric vehicle production and anticipated additional tariff-related costs for 2025. Mizuho previously raised Autoliv’s price target to $122 following the Capital Markets Day, emphasizing the company’s market share in China. Jefferies also noted Autoliv’s market leadership and strong margins as key strengths.
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