07:55 AM EDT, 05/03/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We lower our 12-month target by $2 to $24, based on a FY 25 (Sep.) P/E of 6.9x, a justified discount to peers. We cut our adjusted EPS estimates to $2.35 from $2.85 for FY 24 and to $3.50 from $3.70 for FY 25. ADNT posts Mar-Q adjusted EPS of $0.54 vs. $0.32 (+69%), ahead of the $0.44 consensus. The beat was driven by stronger-than-expected margins, as revenue fell 4% to $3.75B ($40M below consensus) but adjusted EBITDA margin expanded 60 bps to 6.1% (60 bps above consensus). Despite the sizeable beat, ADNT lowered FY 24 net sales and adjusted EBITDA guidance to $14.8B-$14.9B and $900M-$920M from $15.4B-$15.5B and $985M, respectively, which compares to the current consensus forecasts of $15.47B and $972M. ADNT said the guidance includes expectations for slower launch ramps, adverse customer mix, and softer electric vehicle production. We reiterate our Sell opinion as industry headwinds are materializing in tandem with slowing global auto production growth, seeing a significant cut to Street estimates.