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Investing.com -- RBC Capital Markets initiated coverage of Autoliv Inc (ST:ALIVsdb) with an Outperform rating and a $133 price target saying the company has a dominant position in the automotive safety segment and limited competitive threats due to the complexity and regulatory nature of its products.
Autoliv (NYSE:ALV) controls about 45% of the global airbag and seat-belt market, well ahead of its nearest competitor ZF, which holds around 20% and is planning to exit the segment.
Autoliv is a rare auto supplier with strong market share in a category that will likely not be outsourced by automakers due to safety-critical components and strict regulatory requirements, analyst at RBC wrote.
The firm expects growth in safety content per vehicle to be driven by rising living standards in emerging markets and increased penetration of premium vehicles, which tend to include higher-value safety systems.
Autoliv is also expanding into new markets, including motorcycles and commercial vehicles, with the aim of adding 22% incremental growth by 2030.
RBC noted Autoliv’s business is less exposed to volatility in electric vehicle adoption because its core products, airbags, seatbelts, and steering wheels—are not tied to powertrain type.
It also downplayed tariff risks, saying the company’s direct exposure is limited and auto production forecasts have recently improved.
Despite under-indexing in China, Autoliv is still the top player in the country, aided in part by its supply of airbag inflators to BYD (SZ:002594), which otherwise in-sources safety systems.
The price target implies a 7.5x multiple on RBC’s 2026 EBITDA forecast, within the company’s historical range.
The brokerage said its assumptions may be conservative given management’s projection of 4–6% annual growth in the near term.