UPDATE: Goldman Sachs Reiterates Neutral Rating, Raises PT on TRW Automotive

In a report published Wednesday, the Goldman Sachs Group reiterated its Neutral rating on TRW Automotive Holding TRW, and slightly raised its price target from $54.00 to $55.00. Goldman Sachs noted, “As we had anticipated, TRW saw a lower yoy margin headwind of 30bp in 2Q12 vs. the 120bp contraction seen in 1Q12. While we still expect full-year margins to be down slightly, we believe 2H should see a yoy increase of 60bp driven by diminished supply constraints and premium freight, stronger revenue mix from lower module sales, and better aftermarket sales with the destocking having largely been completed. While consensus estimates are a moving target, we see upside estimate revision potential for 2013 where we are 6% above the Street before factoring in any possible buybacks that might result from balance sheet optimization. One of the more important takeaways for the call, in our view, was that management anticipates moving forward with additional cash deployment to shareholders within the next three board meetings. On our projections, a 0.5X increase in net leverage would raise $800mn, significantly more cash than needed to fund its US pension.” TRW Automotive Holding closed on Tuesday at $39.30.