Piper Jaffray On Autoliv: Waiting On The Sidelines

Autoliv "exhibits an above-average growth profile," said Potter. The analyst attributed the company's strength partly due to the trend toward self-driving vehicles, "which supports secular growth in ALV's Electronics segment."

Related Link: 3 Best Ways To Invest In Driverless Car Technology Today

Additionally, Autoliv benefited from "a sizeable tailwind in the Passive Safety segment, where competitor Takata (TAKATA CORP, TOKYO TKTDF TKTDY is facing unprecedented recalls," stated Potter. "The rush to replace Takata's faulty airbag inflators is the primary reason why ALV shares have outperformed most peers in the last year."

The analyst warned, however, that investors have crowded into Autoliv "in anticipation of potential guidance increases."

At time of writing, Autoliv traded at $122.01, down 2.28 percent.