UPDATE: J.P. Morgan Downgrades Autoliv to Neutral, Raises PT on Mixed Factors
In a report published Monday, J.P. Morgan analyst Ryan Brinkman downgraded the rating on Autoliv (NYSE: ALV) from Overweight to Neutral, but raised the price target from $81.00 to $88.00.
In the report, J.P. Morgan noted, “As a result, we believe underlying operating margins are now structurally higher, although margins peaked in 2010 as the firm reinvested gross profit dollars in RD&E to support growth. We believe one of two things is now likely to happen: (1) margins will expand as the firm levers the higher spending; or (2) the firm will reinvest even more profits in growth. Either way, the consequence should be higher EBIT dollars than suggested by consideration of the firm's 2011-2012 margin trajectory alone. Our Neutral rating balances the moderate growth near term during the investment phase before the aforementioned safety-related revenue growth and potential margin expansion drive earnings tailwind beyond the 2014/15 time frame.”
Autoliv closed on Friday at $77.39.
Latest Ratings for ALV
|Mar 2017||RBC Capital||Upgrades||Underperform||Sector Perform|
|Mar 2017||Bernstein||Initiates Coverage On||Underperform|
|Mar 2017||Mizuho||Initiates Coverage On||Neutral|
© 2017 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.