Trump announces trade deal with EU following months of negotiations
On Tuesday, HSBC analysts downgraded Autoliv, Inc. (NYSE:ALV) stock from Buy to Hold, adjusting the price target to $100 from the previous $109. The decision follows the company’s 2025 guidance, which came in below HSBC’s expectations, and persistent revenue challenges in China compared to market production. Currently trading at $93.91, InvestingPro analysis suggests the stock is undervalued, with three analysts recently revising their earnings estimates downward. This recalibration by HSBC suggests a modest 3.5% potential upside for the stock.
HSBC’s revised price target of $100 reflects an approximately 8% decrease from their former target. The analysts have also lowered their earnings per share (EPS) estimates for Autoliv in light of the updated guidance. With a current P/E ratio of 12.02 and annual revenue of $10.39 billion, the company maintains solid fundamentals despite challenges. HSBC still assigns Autoliv the highest valuation multiple among its peers, indicating a degree of confidence in the company’s market position relative to competitors. Get deeper insights into Autoliv’s valuation metrics and more with a comprehensive InvestingPro Research Report, available along with analysis of 1,400+ other US stocks.
The downgrade is primarily attributed to Autoliv’s performance and expectations in China, a critical market for the automotive safety systems manufacturer. The company’s top-line weakness in this region has been a concern against the backdrop of overall market production figures.
Autoliv’s recent guidance for the year 2025 has not met the analysts’ projections, leading to the revised stock rating and price target. This guidance is a key factor for investment firms when assessing the company’s future growth prospects and financial health.
Investors and market watchers will be keeping a close eye on Autoliv’s performance in the coming months, especially in the Chinese market, which remains a significant factor in the company’s revenue stream. The stock, which offers a 2.98% dividend yield and has maintained dividend payments for 28 consecutive years, currently trades near its 52-week low of $89.51. The stock’s movement following this rating change will be of particular interest to those tracking the automotive industry and its suppliers.
In other recent news, Autoliv Inc. experienced a series of financial adjustments following its fourth quarter results. Mizuho (NYSE:MFG) Securities reduced Autoliv’s stock price target to $112 from $115, maintaining an Outperform rating. This adjustment came after Autoliv reported Q4 revenue of approximately $2.62 billion and earnings per share (EPS) of $3.05, contrasting with consensus estimates of $2.73 billion in revenue and $2.80 EPS. Meanwhile, JPMorgan cut Autoliv’s stock price target to $109 from $115, keeping a Neutral rating.
These revisions are part of recent developments after Autoliv’s Q4 earnings beat analyst expectations, but revenue fell short. Despite the revenue shortfall, Autoliv achieved record profitability for the quarter, with operating income reaching a new high of $353 million and an operating margin of 13.5%. For the year 2025, Autoliv has guided for revenue to be approximately flat year-over-year, as foreign exchange headwinds are expected to negate organic growth.
In light of these factors, both Mizuho and JPMorgan have maintained their respective ratings but revised their estimates and price targets to reflect Autoliv’s latest financial outlook. These adjustments offer investors a clearer understanding of Autoliv’s financial performance and future projections.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.