TD Cowen reiterates Buy rating on Aptiv stock with $107 price target

Investing.com - TD Cowen maintained its Buy rating and $107.00 price target on Aptiv PLC. (NYSE:APTV) following the company’s Investor Day. This target closely aligns with InvestingPro’s Fair Value assessment, suggesting the stock is currently undervalued at its price of $73.46.

The research firm stated that the Investor Day presentation supported its existing Buy thesis and price target for the automotive technology supplier.

TD Cowen highlighted three key takeaways from the event, noting it became "more constructive" on the outlook for Aptiv’s Electrical Distribution Systems (EDS) division. This positive outlook comes despite the stock taking an 8.42% hit over the past week, with technical indicators suggesting the stock is currently in oversold territory.

The firm also observed that "New Aptiv’s industry assumptions seem to embed some conservatism," which it believes improves the company’s risk/reward profile going forward.

While TD Cowen acknowledged that "Aptiv’s future capital deployment split will remain a source of some debate," the firm indicated it would be comfortable modeling one-third of the company’s future free cash flow for share buybacks. InvestingPro data shows Aptiv maintains a healthy financial position with a current ratio of 1.79, indicating liquid assets comfortably exceed short-term obligations. Discover 10+ additional ProTips and comprehensive analysis in Aptiv’s Pro Research Report.

In other recent news, Aptiv PLC reported strong financial results for the third quarter of 2025, with earnings per share (EPS) of $2.17, surpassing the forecasted $1.80. The company’s revenue reached $5.2 billion, exceeding the expected $5.09 billion. Aptiv also announced plans to spin off its Electrical Distribution Systems business into a new independent publicly traded company, with the separation expected to be completed by March 31, 2026. The company filed a preliminary registration statement with the U.S. Securities and Exchange Commission for this purpose.

In terms of analyst perspectives, UBS maintained a Neutral rating on Aptiv, noting that the company’s sales targets were largely in line with expectations, though margin projections were better than anticipated. Meanwhile, Oppenheimer reiterated its Outperform rating, highlighting Aptiv’s growth potential in non-automotive sectors. Additionally, Aptiv has entered a strategic partnership with Robust.AI to develop AI-powered collaborative robots, aiming to enhance warehouse and industrial automation applications. This collaboration will integrate Aptiv’s perception and machine learning technologies with Robust.AI’s robotics platform.

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