Buy Rating Affirmed: Visteon’s Growth Trajectory and Market Outperformance

Goldman Sachs analyst Mark Delaney has maintained their bullish stance on VC stock, giving a Buy rating on April 17.

Mark Delaney has given his Buy rating due to a combination of factors indicating a robust outlook for Visteon’s business. Despite a modest underperformance in the first quarter of 2024 when compared to market expectations, Visteon has sustained its forward guidance, which projects a growth over market of 10-12%. The company’s solid booking levels demonstrate a strong trajectory towards achieving high single to low double digit growth above the market average in the mid to long term. This projection aligns with Visteon’s ambition to target low double digit market growth through 2026, with an anticipated revenue nearing $5.0 billion.

Moreover, Delaney’s optimism is further bolstered by Visteon’s potential in content growth, which is considered to be one of the highest among its tier 1 competitors. This is particularly significant in the context of an automotive production market experiencing relatively subdued growth. Additionally, while there is a general investor skepticism regarding the growth pace of Visteon’s battery management system (BMS) product, the company has reported first-quarter sales that surpassed expectations. Furthermore, Visteon’s 2024 guidance includes a conservative estimate compared to customer schedules for their BMS product, suggesting potential for upward revisions should the BMS product continue to outperform.

In another report released on April 17, Guggenheim also maintained a Buy rating on the stock with a $126.00 price target.

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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.