Jefferies assumes coverage on Autoliv stock with Buy rating, $140 price target

Investing.com - Jefferies has assumed coverage on Autoliv, Inc. (NYSE:ALV) with a Buy rating and a price target of $140.00, according to a research note released Wednesday. The target represents significant upside potential for the $8.8 billion market cap company, which is currently trading near its 52-week high of $115.25 and has delivered an impressive 26% return over the past six months.

The research firm highlighted Autoliv’s market leadership, ongoing share gains, strong margins, and content tailwinds as key strengths supporting the positive outlook for the automotive safety systems supplier. InvestingPro data shows the company maintains a "GREAT" financial health score, with robust profitability metrics and a moderate debt level. Additional insights and detailed analysis are available in InvestingPro’s comprehensive research report, one of 1,400+ deep-dive reports available to subscribers.

Jefferies emphasized that Autoliv’s scale advantages and quality are fundamental enablers that will likely strengthen with increased automation, potentially driving margins higher than current targets beyond 2027.

The firm noted that these factors, combined with Autoliv’s innovation leadership, are expected to generate above-consensus earnings growth that is not currently reflected in the company’s valuation.

Autoliv, which manufactures automotive safety systems including airbags and seatbelts, has been positioned by Jefferies as a company with strong fundamentals and growth potential in the automotive safety sector.

In other recent news, Autoliv, Inc. has announced several significant developments that have captured investor attention. The company held a Capital Markets Day where it reiterated its financial targets for 2025, projecting organic sales growth of around 2% and an adjusted operating margin of approximately 10-10.5%. Autoliv also confirmed its long-term financial goals, targeting 4-6% annual organic growth and a 12% adjusted operating margin. The company announced a new $2.5 billion share repurchase program, aiming for annual buybacks between $300 million and $500 million through 2029, effective July 2025. Additionally, Autoliv increased its quarterly dividend by 21% to $0.85 per share for the third quarter of 2025. Analysts from Mizuho (NYSE:MFG) responded positively by raising the stock price target to $122 from $112 while maintaining an Outperform rating. The company highlighted its strong market share in China and projected an increase in the battery electric vehicle light vehicle production mix to over 30% by 2030. Autoliv’s board also approved a significant share repurchase authorization, reinforcing confidence in its leadership in passive safety systems.

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