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Investing.com - Wolfe Research downgraded Aptiv PLC (NYSE:APTV) from Outperform to Peerperform on Wednesday, citing limited upside potential at current levels of $71.67. According to InvestingPro data, the stock trades at a P/E ratio of 11.2x and shows strong momentum with an 18.9% return over the past six months.
The research firm adjusted its earnings estimates for the automotive technology company, raising its 2025 EPS forecast to $7.24 from $7.03 and its 2026 EPS projection to $7.70 from $7.48. InvestingPro analysis suggests the stock is currently undervalued, with additional ProTips highlighting strong financial health and management’s aggressive share buybacks.
Wolfe Research acknowledged Aptiv’s technological leadership in key automotive trends including electrification, advanced driver assistance systems (ADAS), autonomy, and smart vehicle architectures, but noted that realizing the full potential of these technologies "will likely take time."
The firm’s valuation model applies a 4.0x EV/2026 EBITDA multiple to Aptiv’s Electrical Distribution Systems (EDS) segment and a 7.5x multiple to the remainder of the business, supporting a share price in "the low-to-mid $70s."
Wolfe Research concluded that it sees "better risk/reward elsewhere" in the automotive supplier sector, despite maintaining a long-term positive view on Aptiv’s technological positioning.
In other recent news, Aptiv PLC reported first-quarter earnings and revenue that exceeded analyst expectations. The company posted adjusted earnings per share of $1.69, surpassing the anticipated $1.51, and achieved revenue of $4.8 billion, slightly above the forecasted $4.78 billion. Despite a 2% year-over-year decline in revenue, Aptiv raised its full-year 2025 outlook, projecting earnings per share between $7.00 and $7.60 on revenue of $19.6 to $20.4 billion. UBS analysts responded by raising their price target for Aptiv to $66.00 from $58.00, maintaining a Neutral rating, while noting the company’s resilience amid market uncertainties.
Additionally, TD Cowen reaffirmed its Buy rating for Aptiv, setting a price target of $90.00, highlighting the company’s strategic growth beyond the automotive sector. The firm emphasized Aptiv’s potential in non-automotive areas, such as humanoid robots, and expressed confidence in its future performance. TD Cowen’s analysts believe Aptiv could be valued similarly to multi-industrial companies over time. Both firms’ analyses reflect a cautious optimism about Aptiv’s ability to navigate economic challenges while expanding its business scope.
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