Autoliv's Narrowed Margin Guidance Already Reflected in Consensus

Dow Jones10-26 16:39

0839 GMT - Autoliv's narrowed guidance is already fully factored into consensus, Berenberg analysts write. The company narrowed full-year margin guidance to around 10.5%, the lower end of the previous 10.5%-11% range, reflecting well-flagged input cost pressures and weaker China volumes, while consensus already sits at 10.4%, Berenberg adds. The third-quarter print was solid, particularly in terms of margin execution, although the beat was partly supported by lower net research and development expenses, it adds. The quality of the third-quarter margin beat, weakening China performance, and a demanding fourth-quarter outlook weighed on shares after results on Friday. However, Berenberg believes that key structural positives remain overlooked. It rates the company at buy with a 1,317 Swedish kronor price target. Shares rise 3.1% to 1,145 kronor.

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