5 big analyst AI moves: Apple lifted to Buy, AI chip bets reassessed
Investing.com - Berenberg raised its price target on Autoliv, Inc. (NYSE:ALV) to $134.00 from $112.00 on Tuesday, while maintaining a Buy rating on the automotive safety systems supplier. According to InvestingPro data, Autoliv’s stock has shown remarkable strength with a 39.88% return over the past six months, while currently trading slightly below its Fair Value.
The upgrade follows Autoliv’s release of what Berenberg described as "solid Q3 2025 results" on October 17. The firm highlighted particularly strong margin performance, which it believes has reduced risk for the company’s full-year 2025 margin profile. InvestingPro analysis reveals a healthy gross profit margin of 19.34% and an impressive return on equity of 31%, supporting the company’s strong financial position.
Berenberg noted that Autoliv now faces "a much less demanding Q4" to reach the mid-point of its guidance. However, the firm acknowledged that investors might have expected stronger performance in China, while Autoliv’s organic growth guidance remained unchanged.
The unchanged organic growth guidance now implies a 200 basis point lower outperformance versus global light vehicle production for 2025 than was implied at the half-year mark. Berenberg suggested this could be conservative but may also reflect potential production volatility in Q4, citing a fire at a key U.S. aluminum supplier and renewed chip supply tensions in Europe.
Autoliv currently trades at 8.5 times EV/EBIT and approximately 9% free cash flow yield for fiscal year 2026, representing about a 20% premium to peers. Berenberg considers this premium justified by Autoliv’s higher margin and cash-conversion profile. InvestingPro data shows the company maintains a strong financial health score of "GREAT" and has consistently paid dividends for 29 consecutive years, with a current yield of 2.88%. For deeper insights into Autoliv’s valuation and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.
In other recent news, Autoliv, Inc. reported third-quarter 2025 financial results with revenue of $2.7 billion and earnings per share of $2.32, surpassing consensus estimates of $2.7 billion in revenue and $2.09 in earnings per share. Mizuho reiterated its Outperform rating on Autoliv, setting a price target of $140.00, following these solid results. UBS, however, downgraded Autoliv from Buy to Neutral, citing limited upside potential to the 2025 guidance and consensus estimates, while slightly raising its price target to $124.00.
TD Cowen raised its price target on Autoliv to $133.00 from $106.00, maintaining a Buy rating and highlighting higher estimates and target multiples after the company’s second-quarter results. Mizuho also increased its price target to $130.00 from $122.00, continuing to rate the stock as Outperform due to strong second-quarter earnings. Autoliv’s second-quarter revenue reached $2.71 billion, with earnings per share of $2.21, both exceeding consensus estimates. The company’s organic sales grew 3.4% year-over-year in the second quarter, outperforming light vehicle production growth of 2.7% during the same period. These developments reflect a mix of positive earnings performance and varied analyst perspectives on Autoliv’s future potential.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.