Joseph Spak, an analyst from UBS, maintained the Hold rating on Aptiv. The associated price target remains the same with $94.00.
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Joseph Spak has given his Hold rating due to a combination of factors surrounding Aptiv’s upcoming strategic changes and financial targets. The company is planning a spin-off of its EDS segment, which is expected to be completed by the end of the first quarter of 2026. This separation aims to create two distinct entities, each with its own growth strategies and investor bases. However, the ambitious financial targets set for 2028, particularly for the ‘New Aptiv’, appear challenging, with consensus estimates falling below these projections.
Spak notes that while the spin-off could unlock mid-term value, the current market conditions suggest that the stock may remain range-bound until the transaction is finalized. The focus on non-automotive growth and maintaining a strong margin profile is positive, yet there are risks associated with the need for inorganic growth to achieve diversification goals. Given these uncertainties and the potential for a re-rating based on multiple factors rather than immediate revisions, Spak believes a Hold rating is appropriate at this time.
In another report released on October 31, Piper Sandler also maintained a Hold rating on the stock with a $87.00 price target.