Autoliv initiated with a Buy at BofA

BofA initiated coverage of Autoliv (ALV) with a Buy rating and $140 price target The shares trade at a valuation that “materially undervalues the quality of its franchise,” the analyst tells investors in a research note. The firm says Autoliv is trading at only a 10% premium to its European peers, well below its long-term 20% quality premium. BofA believes the stock’s recent multiple compression is based on sentiment, not fundamentals, creating a “rare opportunity to buy a resilient, structurally growing, double-digit margin business with strong shareholder returns at an undemanding valuation.”