Autoliv: Baird Keeps Neutral Rating, Raises PT to $126 from $108

Autoliv: Baird Keeps Neutral Rating, Raises PT to $126 from $108

Autoliv Inc (ALV, Financial) has seen a notable shift in its stock price target, as Baird has increased its price target to $126 from the previous $108, while maintaining a Neutral rating. This move reflects growing optimism about the vehicle technology and mobility sector, as analysts anticipate positive performance from auto suppliers in the upcoming quarters.

According to Baird, the sector's outlook has improved, leading to an upward revision of the price target. This adjustment aligns with stronger industry fundamentals and a more positive outlook for the third quarter. The analyst's confidence in the sector's performance is evident in the revised estimates and price targets.

Wall Street analysts have also shown confidence in Autoliv's prospects. Based on the one-year price targets from 19 analysts, the average target price for Autoliv Inc is $119.18, with a high estimate of $140.00 and a low estimate of $100.00. This average target implies an upside of 1.00% from the current price of $118.00. Additionally, the consensus recommendation from 22 brokerage firms is "Outperform," indicating a generally positive sentiment towards the stock.

GuruFocus estimates that Autoliv Inc's GF Value in one year is $112.71, suggesting a downside of 4.48% from the current price. This estimate is calculated based on historical multiples and future performance estimates.

In terms of business performance, Autoliv Inc reported a 1% decrease in net sales year over year to $2.6 billion, but saw a significant improvement in adjusted operating income, which increased by 28% to $255 million. The adjusted operating margin improved by 230 basis points to 9.9%, while the gross margin increased by 160 basis points to 18.6%. The company also increased its earnings per share (EPS) by $0.58, driven by higher operating income and a lower number of shares.

Despite these positive developments, Autoliv Inc faces several challenges, including uncertainty in global light vehicle production, adverse regional and customer mix development, and potential cost pressures from labor and tariffs.

Overall, while Baird's upward revision of the price target reflects growing optimism, investors should closely monitor the company's ability to navigate these challenges and maintain its positive performance trajectory.

References:
[1] https://www.gurufocus.com/news/2971426/autoliv-alv-price-target-raised-by-baird-as-sector-outlook-improves-alv-stock-news
[2] https://www.marketbeat.com/instant-alerts/autoliv-nysealv-rating-increased-to-strong-buy-at-wall-street-zen-2025-07-05/