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KeyBanc Downgrades Autoliv Inc. (ALV) to Hold; Valuation Call

November 24, 2009 7:02 AM EST
ALV Hot Sheet
Rating Summary:
    0 Buy, 8 Hold, 2 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 16 | Down: 7 | New: 23
KeyBanc downgrades Autoliv Inc. (NYSE: ALV) from Buy to Hold. Price target $41.

KeyBanc analyst says, "As Autoliv has reached our $41 price target, we are downgrading it to HOLD from BUY. While we remain confident that ALV could generate 2011 normalized earnings in the $3.40-$3.90 range based on: 1) a gradual return to more normalized global light vehicle production levels; 2) a return to the high end of its historical operating margin range; and 3) organic revenue growth independent of production in the 3-5% range; we believe those assumptions are largely discounted into the current stock price. Over the near term, we continue to believe that ALV could meet or even exceed our earning estimates, and as such we are maintaining our earnings estimate of $0.51 (First Call consensus $0.43) for 2009 and $2.23 (First Call consensus
$2.41) for 2010.

"While we remain confident that ALV could generate 2011 normalized earnings in the $3.40-$3.90 range based on: 1) a gradual return to more normalized global light vehicle production levels; 2) a return to the high end of its historical operating margin range; and 3) organic revenue growth independent of production in the 3%-5% range; we believe those assumptions are largely discounted into the current stock price..."

To see all the upgrades/downgrades on shares of ALV, visit our Analyst Ratings page.

Autoliv, Inc. (Autoliv) is a supplier of automotive safety systems with a range of product offerings, including modules and components for passenger and driver-side airbags, side-impact airbag protection systems, seatbelts, steering wheels, safety electronics, whiplash protection systems and child seats, as well as night vision systems and other active safety systems.

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