Stifel initiates Adient stock with Buy rating on expected margin expansion

Investing.com - Stifel initiated coverage on Adient (NYSE:ADNT) with a Buy rating and a price target of $27.00 on Wednesday. According to InvestingPro data, the stock appears undervalued based on its Fair Value analysis, with analyst targets ranging from $17 to $64.

The research firm cited expectations for margin expansion as the primary driver for its positive outlook on the automotive seating supplier.

Stifel highlighted several factors supporting its bullish stance, including improved contract pricing and terms, the discontinuation of unprofitable metals business operations, and benefits expected from European restructuring efforts.

The firm also pointed to growth opportunities in China as a contributing factor to its positive assessment of Adient’s prospects.

Stifel expects Adient to generate improved free cash flow driven by higher margins and eventually lower restructuring expenses, with the company using these funds to reduce share count through repurchases, thereby increasing earnings per share and free cash flow per share.

In other recent news, Adient PLC reported its third-quarter earnings for 2025, showcasing a revenue achievement of $3.74 billion, which exceeded the forecasted $3.64 billion. Despite this revenue success, the company’s earnings per share (EPS) fell short, recording $0.45 compared to the anticipated $0.48, representing a 6.25% negative surprise. These developments came amidst a positive pre-market reaction from investors, driven by the strong revenue performance. Additionally, the company’s future guidance has contributed to investor optimism. No information was provided regarding any mergers or acquisitions. Analyst opinions or changes in stock ratings were not mentioned in the recent updates. These are the latest developments concerning Adient PLC.

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