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Analysts See Limited Upside For Visteon

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Analysts See Limited Upside For Visteon
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Visteon Corp (NASDAQ: VC) was hit with two downgrades recently as sell-side analysts project limited upside for the auto supplier stock. 

The Analysts

Goldman Sachs' David Tamberrino on July 13 downgraded Visteon from Buy to Neutral and lowered the price target from $150 to $142.

Wells Fargo's Richard Kwas on July 18 downgraded Visteon from Outperform to Market Perform and lowered the price target from $146 to $137.

The Thesis

Goldman's Tamberrino is concerned about the company's exposure to Ford Motor Company (NYSE: F) and the monetization of the DriveCore product. (See the analyst's track record here.) 

Consensus revenue growth expectations are elevated, as Goldman forecast 2019 revenue at $3.3 billion, below the consensus of $3.4 billion, the analyst said. 

The stock has limited upside relative to Tamberrino's Buy-rated companies in the supplier sector, he said. The analyst still views Visteon as a potential M&A target, but with upside potential only in the low teens. 

Wells Fargo's Kwas likes Visteon Corp's long-term story but said it has limited catalysts that could push the stock significantly higher over the next six to 12 months. (See the analyst's track record here.) 

Visteon is not expected to show revenue outperformance in 2019, Kwas said, adding that he is not considering its 2020 and beyond earnings potential, as there are other stocks with more upside potential.

Price Action

Visteon shares closed Friday's session at $128.15.

Related Links:

Adient's Turnaround Will Take Years, Baird Says In Bearish Turn

Strategic Action At Visteon Is Unlikely, Morgan Stanley Says In Double Downgrade

Photo courtesy of Visteon.

Latest Ratings for VC

DateFirmActionFromTo
Nov 2018Morgan StanleyMaintainsUnderweightUnderweight
Oct 2018Wells FargoMaintainsMarket PerformMarket Perform
Oct 2018CitigroupMaintainsNeutralNeutral

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Posted-In: Auto Suppliers David Tamberrino Goldman Sachs Richard KwasAnalyst Color Downgrades Price Target Analyst Ratings Best of Benzinga

 

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