J.P. Morgan Reiterating Overweight on Visteon

J.P. Morgan Chase & Co. is out with a research report on Visteon Corp.

and is reiterating its Overweight rating and $71 price target on shares. In a note to clients, J.P. Morgan Chase & Co. writes, "A Bloomberg article late Friday indicated that Visteon is exploring the sale of its Lighting and Interiors businesses, that they could jointly generate $450MM in proceeds, and that VC plans to buy the remaining 30% stake in its Korean sub, Halla. VC has not commented on this article. The potential sale price and that Interiors could be for sale are really the only new pieces of information here (Lighting has been classified as “non-core” for several months now, and the reference to Halla was encouraging but directionally no different from comments made at the summer analyst day). At a high level, we do believe that the pace of corporate actions is accelerating at Visteon, a view we formed from recent Board changes and the retaining of external financial advisors (the Bloomberg article, if true, reinforces that view). We are less concerned with the potential selling price, as the real value of selling the consolidated interiors business is the potential re-rating of the residual Visteon business that such a transaction would enable in our view." Shares of VC lost $1.56 yesterday to close at $55.62.