Market Overview

4 Things KeyBanc Likes About The New Delphi Technologies

Share:
4 Things KeyBanc Likes About The New Delphi Technologies

Delphi Automotive’s spinoffs are doing just fine on their own. Not 10 days into its independent life, Delphi Technologies PLC (NYSE: DLPH) earned its fifth Buy rating with expectations of reclaiming its recent stock concessions.

The Rating

KeyBanc Capital Markets analysts Brett Hoselton and Irina Hodakovsky initiated coverage Friday with an Overweight rating and a $61 price target.

The Thesis

KeyBanc expects production growth across every continent to support 1- to 2-percent compound annual growth rates for Delphi Technologies over the next few years, while client expansion in new business segments pushes CAGR 1 to 2 percent above the industry average.

Meanwhile, volume leverage and cost savings could drive a 50-basis point annual margin expansion and enhance earnings per share growth.

“We believe EPS upside is possible, driven by strategic acquisitions to enhance technology portfolio and accelerate growth in electrification, as well as potential for opportunistic share repurchases,” Hoselton and Hodakovsky wrote in a note.

The analysts forecast fourth-quarter EPS of $1.11 with revenue of $1.238 billion.

Price Action

At time of publication, Delphi Technologies was set to open at $49.

Related Links:

'It's A Huge Deal': Delphi Buys Autonomous Startup nuTonomy

BlackBerry Teams Up With Delphi For QNX Operating System

Latest Ratings for DLPH

DateFirmActionFromTo
Nov 2019MaintainsEqual-Weight
Nov 2019DowngradesOverweightEqual-Weight
Nov 2019DowngradesOutperformPerform

View More Analyst Ratings for DLPH
View the Latest Analyst Ratings

Posted-In: Brett Hoselton Irina Hodakovsky KeyBanc KeyBanc Capital MarketsAnalyst Color Price Target Initiation Analyst Ratings Best of Benzinga

 

Related Articles (DLPH)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
VIACJP MorganReinstates50.0
NUVASVB LeerinkMaintains92.0
SRPTCantor FitzgeraldMaintains211.0
SRPTPiperJaffrayMaintains210.0
LULUGoldman SachsMaintains219.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com

Celebrate American Energy Independence With This New ETF

CSX Under Selling Pressure After CEO Hunter Harrison Takes Medical Leave