BUZZ-Aptiv falls after Piper Sandler cuts rating citing risks from Volkswagen-Rivian JV

Reuters06-26

** Shares of auto parts supplier Aptiv Plc down 5.3% at $69.48 premarket

** Piper Sandler downgrades stock to "underweight" from "neutral", cuts PT to $63 from $78

** Says German automaker Volkswagen and U.S. EV maker Rivian's announcement to share EV architecture and software is a "red flag" for APTV's strategy

** Notes APTV's long-term operating margin target hinges on selling software-enabled concept called smart vehicle architecture $(SVA)$ to automakers who lack know-how

** "Relying on a 3rd-party (like Aptiv) to deliver similar products will always be slower, and if APTV insists on earning 17% margin, it will also be more expensive" - Piper

** Adds, APTV isn't irrelevant but its design input is limited

** Of 25 analysts covering stock, 19 rate "buy" or higher, three "hold" and three "sell"; their median PT is $100.5 - LSEG

** Up to Tuesday's close, APTV down 18.2% YTD

(Reporting by Roshan Abraham)

((Roshan.Abraham@thomsonreuters.com))

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment