Visteon (VC) PT Lowered to $105 at JPMorgan

JPMorgan analyst Ryan Brinkman lowered the price target on Visteon (NASDAQ: VC) to $105.00 (from $108.00) while maintaining a Neutral rating.

The analyst comments "We are catching up on Visteon earnings by reducing our estimates and price target after the auto parts supplier earlier this earnings season reported slightly stronger than consensus EBITDA on slightly softer revenue, suggesting solid execution with regard to controllable factors but reflecting also continued customer mix challenges in China as foreign JVs that comprise the majority of revenue cede share to domestic rivals — factors which, along with a reduced outlook for its Battery Management Systems (BMS) business on account of the EV slowdown, prompted the introduction of 2025 and 2027 guidance below the Street and JPM. VC shares nevertheless rose +5.0% (vs. the S&P 500 +0.2%) on February 18 upon the release of 4Q results, as investors we spoke to regarded the below consensus guide as a necessary reset, particularly given the outlook for lower y/y sales in 2025 for both its business in China and for BMS sales globally, after which investors can look forward to the resumption of growth for these portions of Visteon’s larger business (as recent award wins with domestic Chinese automakers increasingly convert into revenue, and as the industry cycles past currently elevated electric vehicle inventories). Investors were able also to latch onto the fact that while 2025 revenue was guided -4.8% below consensus, the shortfall vs. the Street in 2027 was a lesser -2.2%, suggesting a temporal nature to some of the factors that have been dragging on revenue outgrowth (principally, customer mix in China). Flowing the softer 4Q print as well as newly introduced guidance details and commentary through our model, we now estimate 2025 EBITDA of $470 (down from $485 prior) and 2026 EBITDA of $500 (down from $515 prior). Our price target declines to $105 from $108, on account of our lower estimates."

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