Report
Valens Research

APTV - Embedded Expectations Analysis - 2019 03 13

Aptiv PLC (APTV:USA) currently trades near recent averages relative to UAFRS-based (Uniform) Earnings, with a 16.0x Uniform P/E, implying muted expectations for the firm. Additionally, management has concerns about segment growth, their ability to sustain launch volumes, high-voltage product demand, and tariff exposure.

Specifically, management may lack confidence in their ability to sustain technology, infotainment, and user experience growth, and may be exaggerating demand in their active safety and high voltage segment. Moreover, they may lack confidence in their ability to meet expectations for high voltage electrification product line revenue growth, as well as their ability to drive operating income and sustain record launch volumes. Furthermore, they may lack confidence in their ability to fund organic and inorganic growth initiatives, and may be concerned about their ability to find attractive M&A opportunities. Additionally, they may be exaggerating reductions in tariff exposure, and may be concerned about their ability to mitigate tariff pressures and return value to shareholders.
Underlying
Aptiv PLC

Provider
Valens Research
Valens Research

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