Credit Suisse Sees Antaya Acquisition as Small but Valuable for Delphi Automotive PLC

In a report published Wednesday, Credit Suisse analyst Daniel Galves reiterated an Outperform rating and $83.00 price target on

. In the report, Credit Suisse noted, “Delphi announced Monday it had signed a definitive agreement to acquire Antaya Technologies, the leading NA supplier of on-glass connectors. Based on our conversations, this is a niche transaction for DLPH. Antaya generates ~$50 mln in FY revenues, with op margins slightly above DLPH's connectors biz (i.e. >20%). However, the on-glass connectors market is a fast-growing space, with Antaya projected to grow sales by 15%-20% per yr. Furthermore, this deal broadens DLPH's NA connectors portfolio and allows it to leverage Antaya's expertise in markets outside NA.” Delphi Automotive PLC closed on Tuesday at $64.31.