Deutsche upgrades Aptiv to Buy on improving growth into spin-off

Deutsche Bank upgraded Aptiv (APTV) to Buy from Hold with a price target of $78, up from $66. With Aptiv’s growth and margins improving or stabilizing, the stock can work well leading up to the spin-off of Electrical Distribution Systems, the analyst tells investors in a research note. The firm thinks Aptiv’s margin can recover this year, supported by a “healthier” China mix and relatively better volumes from Stellantis. This should position the company well to deliver upside in margin should industry volumes come in better than feared, contends Deutsche Bank.