Phinia initiated with a Buy at UBS

UBS initiated coverage of Phinia with a Buy rating and $55 price target. Phinia is a beneficiary of the internal combustion engine “stronger for longer” theme, particularly in the U.S., as battery electric vehicle expectations get dialed back, the analyst tells investors in a research note. The firm sees potential upside to cash returns in the coming years and says more OEM announcements of pushing out BEV programs and additional cash return announcements are both potential catalysts.