Morgan Stanley Cuts Estimates Again For Autoliv

In a report published Monday, Morgan Stanley analyst Ravi Shanker reiterated an Underweight rating and $70.00 price target on

. In the report, Morgan Stanley noted, “The 3Q miss was driven by China underperformance and higher R&D than expected.The China weakness was likely a one-off driven by excessive inventory builds (and payback for the company's strong outperformance in the past 4 quarters) and we expect ALV's China growth to return to modestly above-market performance in 2015. However,FX headwinds,a lower starting point and margin drag from higher R&D cuts our FY14/FY15 EPS from $5.84/6.80 to $5.65/6.25, though rolling our DCF forward to 2015 keeps our PTat $70. Our estimates are about 10% below consensus.” Autoliv closed on Friday at $90.33.