Aptiv's Strategic Spin-Off and Ambitious Targets: Hold Rating Amid UncertaintiesNovember 18th in NYC. Aptiv announced a plan to separate EDS and distribute via a tax-free spin. The transaction is expected to be completed by the end of 1Q26. We anticipate both RemainCo (aka "New APTV") as well as SpinCo (EDS) presentations will focus on 1) their mid-term outlook (expect 2028 targets), 2) the mid- term strategy for each company which we believe will include a focus on ex-auto growth opportunities, 3) investor education, particularly for 4) capital structure, and 5) shareholder value creation from the spin. The financial target communication strikes a tricky balance between the need to attract new investors but also to be able to deliver on targets to build credibility with existing and new shareholders. For the day to be a major positive catalyst we believe mid-term targets will have to be better than initially indicated in January.