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Investing.com - Mizuho (NYSE:MFG) has raised its price target on Autoliv, Inc. (NYSE:ALV) to $130.00 from $122.00 while maintaining an Outperform rating following the company’s second-quarter earnings report. According to InvestingPro data, the company maintains a "GOOD" overall financial health score and trades at an attractive PEG ratio of 0.55, suggesting potential undervaluation relative to its growth prospects.
The automotive safety systems supplier reported second-quarter revenue of $2.71 billion and earnings per share of $2.21, exceeding consensus estimates of $2.64 billion and $2.07, respectively. Organic sales increased 3.4% year-over-year, outperforming light vehicle production growth of 2.7% in the same period. The company has maintained dividend payments for 29 consecutive years, with analysts maintaining a bullish consensus on the stock.
Autoliv has revised its 2025 top-line guidance upward, now projecting 3% year-over-year growth compared to its previous forecast of a 1% decline. The company successfully passed approximately 80% of tariff costs to customers and now expects neutral foreign exchange impacts.
The safety equipment manufacturer maintained its full-year operating margin guidance of 10-10.5% and reiterated its long-term target of approximately 12%. Inventory levels increased quarter-over-quarter as the company pulled forward some purchases to avoid additional tariff costs.
Autoliv noted that third-quarter customer production is expected to decrease quarter-over-quarter due to typical seasonality and macroeconomic uncertainty, while its business in China continues to improve as it gains market share with domestic automakers. For deeper insights into Autoliv’s China market potential and comprehensive financial analysis, access the detailed Pro Research Report available on InvestingPro.
In other recent news, Autoliv, Inc. has reported a series of strategic updates and financial projections that have caught the attention of investors. The company recently held a Capital Markets Day, where it reiterated its financial targets for 2025, aiming for organic sales growth of around 2% and an adjusted operating margin of approximately 10-10.5%. Additionally, Autoliv has announced a new $2.5 billion stock buyback program set to begin in July 2025, with plans for annual share repurchases ranging from $300 million to $500 million through 2029. The company also increased its quarterly dividend by 21% to $0.85 per share for the third quarter of 2025. Mizuho analysts responded by raising their price target for Autoliv stock to $122 from $112, maintaining an Outperform rating. Meanwhile, Jefferies reiterated its Buy rating with a $140 price target, highlighting Autoliv’s market leadership, strong margins, and potential for above-consensus earnings growth. Jefferies also noted Autoliv’s advantages in scale and quality, which are expected to enhance with increased automation. These developments reflect Autoliv’s strategic focus on maintaining its leadership in the automotive safety sector while enhancing shareholder returns.
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