European stocks retreat on tech valuation concerns; U.K. economic woes
Investing.com - Oppenheimer has reiterated its Outperform rating on Aptiv PLC (NYSE:APTV), highlighting the company’s diversification strategy and growth potential in non-automotive sectors. The $16.37 billion market cap company appears undervalued according to InvestingPro Fair Value metrics, despite trading at a P/E ratio of 58.4.
The research firm noted that while Aptiv’s guidance suggests modest upside to 2028 revenue, the company’s EBITDA and EPS expectations were largely in line with projections. Aptiv reported $20.15 billion in revenue over the last twelve months with modest growth of 2.16%.
Aptiv has provided significant additional detail on its improving business diversity, targeting 40% non-automotive growth by 2028, partly driven by customer retention through its software ecosystem.
Oppenheimer sees potential upside to guidance if growth in Physical AI applications accelerates beyond Aptiv’s modest assumptions, noting a proliferation of robot and hardware designs as addressable duty cycles expand.
The firm views Aptiv as a play on Physical AI supply chain growth that could benefit from potential margin and multiple expansion as non-automotive business increases and the company executes on its technology and business roadmap.
In other recent news, Aptiv PLC reported strong financial results for the third quarter of 2025. The company exceeded expectations with earnings per share of $2.17, compared to the anticipated $1.80, and generated revenue of $5.2 billion, surpassing the forecasted $5.09 billion. Additionally, Aptiv announced plans to spin off its Electrical Distribution Systems business into a new independent, publicly traded company. This separation is expected to be completed by March 31, 2026, pending customary closing conditions. In another development, Aptiv has entered a strategic partnership with Robust.AI to develop AI-powered collaborative robots, or cobots, for warehouse and industrial automation. This collaboration will leverage Aptiv’s perception and machine learning technologies alongside Robust.AI’s robotics platform. These recent developments reflect Aptiv’s ongoing efforts to expand and innovate in the technology and automation sectors.
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