Sell Rating on Visteon: Missed Q1 Targets and Challenging Outlook

Analyst Colin Langan from Wells Fargo maintained a Sell rating on Visteon (VC – Research Report) and keeping the price target at $106.00.

Colin Langan has given his Sell rating due to a combination of factors surrounding Visteon’s first-quarter financial performance and future outlook. The company’s adjusted EBITDA of $102 million slightly missed consensus expectations and fell short of Langan’s own estimate. Similarly, Visteon’s adjusted EPS also did not meet the anticipated figures. Despite these misses, Visteon maintained its full-year 2024 guidance, which appears optimistic given the current performance.

Furthermore, Visteon’s sales were lower than expected, and the gross margin for the quarter was significantly below the full-year target, suggesting that the company would need to greatly accelerate growth to meet its year-end goals. The decrease in anticipated light vehicle production further challenges the company’s ability to improve margins. Additionally, the reduction in business wins compared to the previous year indicates a potential slowdown in growth, further justifying Langan’s Sell rating on Visteon’s stock.

Based on the recent corporate insider activity of 32 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of VC in relation to earlier this year.

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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.