Market Overview

Buckingham Neutral On Delphi With Growth Already Baked In

Buckingham Neutral On Delphi With Growth Already Baked In

Delphi Technologies PLC (NYSE: DLPH) was in freefall Thursday on no discernable news apart from a fresh sideline rating.

The Rating

Buckingham Research Group analyst Glenn Chin initiated coverage with a Neutral rating and $58 price target.

The Thesis

With global leadership in both internal combustion engines and hybrid and electric powertrains, the firm is expected to profit from shifting secular trends and increasingly stringent environmental regulations.

“While these tailwinds will be partially offset by a shift away from diesels, the net effect will be significantly positive such that the company's revenue growth should outpace global light vehicle production by 2 to 3 percent through 2020,” Chin wrote in a note.

The analyst warned that Delphi will initially suffer one-time adjustment costs associated with the spinoff from Aptiv PLC (NYSE: APTV) and excess capital expenditures, but it will soon realize operating leverage and margin expansion.

The circumstances are seen to catalyze earnings-per-share growth beyond 2018 that is already baked into the current stock value.

Price Action

At time of publication, shares were down 3 percent at $52.46.

Related Links:

Delphi Tech's Valuation 'Extremely Attractive'; BMO Names It A Top Pick

With Delphi Splitting In Two, Morgan Stanley Says One Stock Is Worth Buying

Photo courtesy of Delphi.

Latest Ratings for DLPH

Nov 2019DowngradesOverweightEqual-Weight
Nov 2019DowngradesOutperformPerform
Oct 2019Initiates Coverage OnNeutral

View More Analyst Ratings for DLPH
View the Latest Analyst Ratings

Posted-In: Buckingham Buckingham Research Group Glenn ChinAnalyst Color Price Target Initiation Analyst Ratings Best of Benzinga


Related Articles (DLPH + APTV)

View Comments and Join the Discussion!

Latest Ratings

ARAVH.C. WainwrightReiterates31.0
KMPHH.C. WainwrightReiterates2.5
HASusquehannaInitiates Coverage On27.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
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.
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

Wall Street Analysts Reflect On Tesla's Q4 Earnings

Royal Gold Has 27% Implied Return, Canaccord Says In Upgrade