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ADNT - Embedded Expectations Analysis - 2020 02 12

 Adient plc (ADNT:USA) currently trades at a material discount relative to UAFRS-based (Uniform) Assets, with a 0.6x Uniform P/B. At these levels, the market has bearish expectations for the firm, and management may be concerned about Adient Aerospace, Asian markets, and plant productivity
 Specifically, management may be exaggerating the impact of their reduced ownership in Adient Aerospace on their ability to focus on their core business, and they appear concerned about the complexity of launches in the Asian market. Furthermore, management appears concerned about ongoing headwinds in the non-China Asian markets, and they may lack confidence in their ability to offset the challenging macro environment with their self-help initiatives. Additionally, they appear concerned about their ability to improve plant productivity and grow the front-seat architecture business
Adient plc

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