Morgan Stanley analyst Javier Martinez Olcoz Cerdan maintained a Hold rating on Autoliv (ALV – Research Report) yesterday and set a price target of $107.00.
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Javier Martinez Olcoz Cerdan has given his Hold rating due to a combination of factors surrounding Autoliv’s financial outlook and strategic initiatives. The company has reaffirmed its 2025 guidance, projecting a 2% organic sales growth and an adjusted EBIT margin of 10-10.5%, which is contingent on stable global light vehicle production. Despite potential cost increases from tariffs on materials like steel and aluminum, Autoliv expects these to be largely offset by customer compensation, maintaining its financial stability.
Furthermore, Autoliv has set a mid-term organic sales growth target of 4-6% annually, supported by increased safety content per vehicle and a steady recovery in light vehicle production. The company is also focusing on expanding its Mobility Safety Solutions, which could significantly contribute to revenue by 2030. While these factors indicate a positive trajectory, the Hold rating suggests that the stock’s current valuation already reflects these growth prospects, and investors might want to wait for more clarity on execution and market conditions before making further investment decisions.
In another report released yesterday, Wells Fargo also maintained a Hold rating on the stock with a $100.00 price target.