Intel stock extends gains after report of possible U.S. government stake
Investing.com - Guggenheim raised its price target on Visteon (NASDAQ:VC) to $124.00 from $95.00 on Thursday, while maintaining a Buy rating on the automotive supplier’s stock. The company, currently trading at $109.77 and up 24% year-to-date, appears undervalued according to InvestingPro analysis.
The price target increase represents a significant 30.5% upside from the previous target, reflecting Guggenheim’s confidence in Visteon’s growth trajectory and bookings momentum.
Guggenheim applied a 6.5x EV/EBITDA multiple to its fiscal year 2025 estimate of $482 million, up from its previous 5.5x multiple and $462 million EBITDA estimate.
The research firm noted that Visteon deserves a premium multiple compared to the supplier group average of approximately 5.0x NTM EV/EBITDA, citing the company’s "best-in-class growth and continued bookings momentum."
Guggenheim also highlighted Visteon’s net cash position as providing "positive optionality" for the company, though the current 6.5x multiple still represents a discount to Visteon’s 5-year average of approximately 9.0x.
In other recent news, Visteon has seen a series of analyst upgrades, reflecting a positive outlook for the company. UBS upgraded Visteon to Buy, citing growth prospects with Toyota (NYSE:TM), and raised its price target to $142.00. They project that sales with Toyota could reach nearly $4.4 billion by 2028, surpassing current expectations. Baird also upgraded Visteon to Outperform, noting the company’s strong North American positioning and tariff protection, with a new price target of $125.00. Goldman Sachs raised its rating to Buy, highlighting Visteon’s ability to outgrow auto production, particularly with recent Toyota contracts, and set a price target of $120.00. Wolfe Research upgraded Visteon to Outperform, citing an improved outlook and setting a price target of $123.00. They noted Visteon’s strong cash position and projected cash generation as factors for potential share buybacks. TD Cowen reiterated a Buy rating, maintaining a $105 price target, and expressed confidence in Visteon’s growth prospects. The company’s management has indicated a stable business environment and anticipates top-line growth in the Chinese market by 2026 or 2027.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.