Adient: UBS maintains Neutral rating, raises PT to $26 from $25.

Adient: UBS maintains Neutral rating, raises PT to $26 from $25.

Swiss investment bank UBS has raised its price target for Adient (NYSE: ADNT) to $26.00, up from $25.00, while maintaining a Neutral rating on the automotive seating supplier. The updated target reflects strong momentum in the stock, which has seen a 35.5% return over the past six months, trading at an EV/EBITDA multiple of 4.9x [1].

UBS analysts cited Adient's continued solid business performance as a key factor supporting the company's investment thesis. The bank also noted that Adient stands to benefit from manufacturing reshoring to the United States. UBS analyst Joseph Spak highlighted a potential path to normalized free cash flow in the $300-400 million range for Adient. However, the bank maintained its Neutral stance due to the time it may take for these benefits to materialize and the potential for elevated restructuring costs to impact free cash flow.

The revised price target reflects a modest 1.5% increase to UBS's forecast, with the bank's FY26 EBITDA estimate sitting approximately 3.5% above consensus expectations.

References:
[1] https://www.investing.com/news/analyst-ratings/ubs-raises-adient-stock-price-target-to-26-on-solid-performance-93CH-4176021