Jefferies reiterates Buy rating on Autoliv stock, maintains $140 price target

Published 18/07/2025, 18:30
Jefferies reiterates Buy rating on Autoliv stock, maintains $140 price target

Investing.com - Jefferies has reiterated its Buy rating on Autoliv, Inc. (NYSE:ALV) with a price target of $140.00. According to InvestingPro data, this target aligns with the broader analyst consensus, as the stock currently trades at an attractive P/E ratio of 12.9x and maintains a strong financial health score.

The research firm highlighted Autoliv’s resilience in the second quarter, noting the company made a minor upgrade to its guidance despite significant operating volatility in the period.

Jefferies pointed to several strengths supporting its positive outlook, including Autoliv’s market leadership, share gains, strong margins, and content tailwinds.

The firm emphasized that scale advantages and quality serve as key enablers for Autoliv’s performance, suggesting these factors will only improve with increased automation.

Jefferies projects that these improvements will drive margins higher than current targets beyond 2027, reinforcing its decision to maintain a Buy rating on the automotive safety systems supplier.

In other recent news, Autoliv, Inc. announced several key developments that are attracting attention from investors. The company reported a new shareholder return strategy, including a $2.5 billion stock buyback program effective July 2025 and plans for annual share repurchases between $300 million and $500 million through 2029. Additionally, Autoliv increased its quarterly dividend by 21% to $0.85 per share for the third quarter of 2025. During its Capital Markets Day, Autoliv reiterated its full-year 2025 guidance, projecting organic sales growth of around 2% and an adjusted operating margin of approximately 10-10.5%. The company also maintains its long-term target of 4-6% annual organic growth and a 12% adjusted operating margin. Analysts have responded positively, with Jefferies initiating coverage with a Buy rating and a $140 price target, citing strong fundamentals and growth potential. Mizuho (NYSE:MFG) also raised its price target from $112 to $122, maintaining an Outperform rating following the company’s presentations. The company continues to emphasize its leadership in passive safety and its strong market presence in China.

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