Aptiv, the Consumer Cyclical sector company, was revisited by a Wall Street analyst today. Analyst Alexander Potter from Piper Sandler upgraded the rating on the stock to a Buy and gave it a $103.00 price target.
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Alexander Potter has given his Buy rating due to a combination of factors tied to Aptiv’s improving fundamentals and attractive valuation. He believes the company has adopted a more grounded strategy, with modest growth goals and a clearer value story, especially as it prepares to separate into two listed entities. Potter argues that Aptiv’s core strengths in connectors, electronic control units, and wiring harnesses position it well regardless of how the auto industry evolves, and that the forthcoming spin-out will enhance exposure to higher-margin, non-automotive markets. Even after applying conservative assumptions to management’s revenue and margin outlook through 2028, he still sees the shares as undervalued versus peers.
Potter’s updated sum-of-the-parts analysis, which values “New Aptiv” and the EDS business using distinct peer groups and a restrained set of valuation multiples, yields an equity value that supports his higher $103 price target. He uses a mid-range EV/EBITDA multiple for New Aptiv and a relatively tight, lower multiple for EDS, reflecting differing risk and growth profiles. Importantly, the shift away from an earlier, more software-centric thesis toward a focus on Aptiv’s hardware and manufacturing capabilities reduces dependence on more speculative segments such as SVA and the Motional joint venture. Combined with the structural catalyst of the spin, these factors lead Potter to see a favorable risk-reward profile and justify his upgrade to an Overweight/Buy stance on APTV.
According to TipRanks, Potter is a 5-star analyst with an average return of 19.7% and a 49.20% success rate. Potter covers the Consumer Cyclical sector, focusing on stocks such as Tesla, BYD Co, and Li Auto.