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Dublin-based Aptiv PLC (APTV) is a leading global technology and mobility company serving the automotive sector. With a market cap of $22.2 billion, Aptiv designs and manufactures vehicle components and provides electrical, electronic, and safety technology solutions.
Shares of Aptiv have underperformed the broader market considerably over the past year. APTV has declined 11.5% over this time frame, while the broader S&P 500 Index ($SPX) is up 25.2%. In 2024 alone, the stock is down 9.1%, compared to SPX’s 10.4% return on a YTD basis.
Narrowing the focus, Aptiv stock also falls behind the GX Autonomous & Electric Vehicles ETF’s (DRIV) 2.3% returns over the past 52 weeks.
APTV stock has underperformed in the past year due to challenges in the global automotive industry, including slowing electrification momentum, rising labor and material costs, geopolitical tensions, and economic volatility.
However, shares of Aptiv rose 11.5% on May 2, following the release of its Q1 earnings results. The company reported $4.9 billion in revenue, a 2% annual increase but below the $5 billion estimate. However, adjusted EPS of $1.16 exceeded expectations. Aptiv also returned $600 million to shareholders by repurchasing 7.3 million shares.
For the current fiscal year, ending in December, analysts expect APTV’s EPS to improve 23.7% year over year to $6.01. Moreover, the company’s earnings surprise history is promising. It beat the consensus estimates in each of the four quarters.
Aptiv stock has a consensus “Moderate Buy” rating. Out of 18 analysts covering the stock, 11 rate it as a "Strong Buy," two suggest a “Moderate Buy,” four say a "Hold," and one advises "Moderate Sell.”
This configuration has been consistent over the past three months.
On May 8, Guggenheim raised Aptiv's price target from $92 to $94 and maintained a “Buy” rating on the stock. The new price target suggests the stock could rally as much as 15.3% from the current price levels.
The mean price target of $105.06 suggests a 28.9% premium to APTV’s current levels. The Street-high target of $145 represents an impressive upside potential of a whopping 77.9%.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
