Visteon (VC – Research Report), the Consumer Cyclical sector company, was revisited by a Wall Street analyst today. Analyst Thomas Boyes from TD Cowen maintained a Buy rating on the stock and has a $159.00 price target.
Thomas Boyes has given his Buy rating due to a combination of factors that signal Visteon’s robust future prospects despite some near-term challenges. His optimism stems from the company’s stronger-than-expected adjusted EBITDA margin forecast for FY24, which at 11.8% surpasses the consensus estimate of 11.6%. Boyes also notes Visteon’s ability to deliver on its new business goals, with over $7 billion in wins and around 129 new product launches in FY23, and the intention to match this performance in FY24. Additionally, he points out that Visteon’s engagement with EV-related sales, which constituted approximately 10% of their total sales, shows a promising growth trajectory in line with the market, even as the company benefits from the trend of enhancing ICE platforms with digital and electrified solutions.
On the downside, Boyes acknowledges certain headwinds such as a slight uptick in recoveries due to semiconductor supply constraints and a trimmed FY26 sales target. However, he believes that the long-term potential for high-teens incremental adjusted EBITDA margins on “core sales” outweighs these concerns. The company’s strategic positioning to capitalize on the shift towards advanced digital and electrification features in both EVs and ICE vehicles, as well as its demonstrated ability to secure substantial new business, underpin his positive recommendation for Visteon’s stock.
According to TipRanks, Boyes is ranked #8550 out of 8676 analysts.
See Insiders’ Hot Stocks on TipRanks >>
TipRanks tracks over 100,000 company insiders, identifying the select few who excel in timing their transactions. By upgrading to TipRanks Premium, you will gain access to this exclusive data and discover crucial insights to guide your investment decisions. Begin your TipRanks Premium journey today.
Visteon (VC) Company Description:
Visteon Corp. engages in the design, engineering, and manufacture of electronics products, automotive vehicles and supplies automotive parts. Its products include Instrument Clusters, Information Displays, Audio and Infotainment Systems, Telematics Solutions, Head-Up Displays, SmartCore Domain Controller and DriveCore Autonomous Driving Controller. The company was founded on January 5, 2000 and is headquartered in Van Buren Township, MI.
Read More on VC:
- Visteon Reveals Financial Health and Leadership Updates
- Visteon Announces 2023 Financial Results and 2024 Outlook
- Visteon to Announce Fourth Quarter and Full-Year 2023 Results on Feb. 20
- Visteon price target lowered to $148 from $160 at JPMorgan
- Visteon price target lowered to $140 from $158 at Barclays
