Aptive PLC. (APTV) PT Raised to $82 at UBS

UBS analyst Joseph Spak raised the price target on Aptive PLC. (NYSE: APTV) to $82.00 (from $73.00) while maintaining a Buy rating.

The analyst said in the note, "We are positive on APTV’s decision to spin their Electrical Distribution Systems (EDS) business, believing it helps unlock value and better positions each go forward independent company. While many investors we spoke to thought a spin of their ECG (connector) business was more likely, we believe this could be preferrable as it better aligns the growth/margin profile for the businesses that remain in RemainCo. (ECG and AS&UX), and that entity has a profile that is more discrete from EDS. It also helps RemainCo. delever quicker by putting more debt onto the slower growth, but stable, EDS. Management indicated they evaluated the entire portfolio. We believe EDS could trade at a ~4-6x EBITDA range (we use 4.8x base case) while New APTV could trade ~7.5-10x (we use 8.3x base case). See SOTP analysis and sensitivity inside. We believe the thesis for RemainCo. (New APTV) is one that could use their strong FCF to further diversify away from auto which could result in a re-rating over time. We raise our PT to $82 to $73 based on ~10x 2026 P/E (9x prior). Our SOTP supports our revised multiple."

You May Also Be Interested In

• Freedom Broker Downgrades Gentherm Incorporated (THRM) to Hold
• Popular, Inc. (BPOP) PT Raised to $214 at Benchmark
• Boyd Gaming (BYD) PT Raised to $92 at Stifel Following Quarter With No Surprises