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Research Alert: CFRA Reiterates Sell Opinion On Shares Of Adient Plc
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Research Alert: CFRA Reiterates Sell Opinion On Shares Of Adient Plc
Apr 4, 2025 6:20 AM

09:10 AM EDT, 04/04/2025 (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 $4 to $10, based on a FY 26 (Sep.) P/E of 4.5x, a justified discount to peers. With shares having hit our prior target, we are lowering our forecast and reiterating our Sell opinion. We cut our adjusted EPS estimates to $1.45 from $1.70 for FY 25 and to $2.20 from $2.50 for FY 26. We view ADNT and other auto suppliers as some of the most tariff-impacted companies, as their sales and earnings are largely tied to vehicle production rates. We see U.S. consumers increasingly trading down to used vehicles for affordability reasons, which should negatively impact demand for new vehicles at a time when inventory levels are already well above average. We see the risk of additional auto manufacturing plants being idled, and lower auto production should negatively affect auto supplier sales. As a seating manufacturer, ADNT is significantly more exposed to new vehicle demand than other auto suppliers who sell a higher percentage of their parts into the aftermarket.

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