Street Calls of the Week
Investing.com - Barclays upgraded Aptiv PLC (NYSE:APTV) from Equalweight to Overweight on Friday, while raising its price target to $105.00 from $85.00. The stock, currently trading at $83.72, appears undervalued according to InvestingPro analysis, with shares showing strong momentum after gaining over 31% in the past six months.
The upgrade comes despite recent stock rallies driven by favorable end market data points and improved market sentiment, with Barclays seeing additional upside potential ahead.
Barclays cited improved business dynamics coupled with reasonable valuation as key factors supporting the more bullish outlook on the automotive technology company.
The firm also highlighted potential increased investor interest in Aptiv’s planned spin-off of its Electrical Distribution Systems (EDS) business as a catalyst for the stock.
According to Barclays, the EDS business features solid margins, healthy non-automotive exposure with growth potential, and presents an attractive case when evaluated on a sum-of-the-parts valuation basis.
In other recent news, Aptiv PLC reported second-quarter revenue that exceeded analyst expectations, although there was a slight earnings miss. The company also raised its full-year outlook, indicating a positive trajectory for the remainder of the year. Oppenheimer responded by raising its price target on Aptiv to $92 from $88, maintaining an Outperform rating. This decision was influenced by Aptiv’s ongoing EDS spinoff, which Oppenheimer believes will unlock additional value. Previously, Oppenheimer had increased the price target to $88 from $84 following strong second-quarter results. These results highlighted Aptiv’s progress in expanding its non-light duty vehicle business and developing its AI solutions ecosystem. The company’s recent developments suggest a focus on growth and innovation in various sectors.
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