Bank of America Securities analyst Federico Merendi has reiterated their bullish stance on PHIN stock, giving a Buy rating on April 29.
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Federico Merendi has given his Buy rating due to a combination of factors that highlight PHINIA Inc.’s growth potential and resilience. The company’s management has expressed confidence in future growth, particularly in the aftermarket segment, which is expected to grow at a rate of 3% to 6% annually. Additionally, PHINIA is making strides in the aerospace and off-highway markets, and its strong position in commercial vehicles helps mitigate the impact of increased battery electric vehicle penetration.
Despite concerns about tariffs, PHINIA anticipates recovering these costs by the end of the year through strategic price increases. The company’s limited exposure to light vehicles, which constitute only 27% of sales, further reduces tariff-related risks. Although there are some adjustments in the sales outlook due to lower production volumes, the company benefits from reduced foreign exchange headwinds and tariff recoveries. The price objective has been raised to $55, reflecting updated market valuations and PHINIA’s ability to withstand challenging market conditions.
In another report released on April 29, Northland Securities also maintained a Buy rating on the stock with a $52.00 price target.