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1316: Motion By Wire Advancements Will Drive Stronger Long Term Outlook

Update shared on 12 Dec 2025

Fair value Increased 1.57%
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AnalystHighTarget's Fair Value
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1Y
74.4%
7D
2.0%

Analysts have modestly increased their price target on Nexteer Automotive Group to approximately $9.94 from about $9.79, citing slightly stronger expectations for revenue growth and profit margins, despite a higher assumed discount rate and a marginally lower future P/E multiple.

What's in the News

  • Nexteer Automotive unveiled its Direct Drive Hand Wheel Actuator as the latest advance in Steer by Wire technology, promising improved steering feel, integration and vehicle design flexibility for software defined and automated driving platforms (Key Developments).
  • The new Direct Drive Hand Wheel Actuator supports both 12V and 48V architectures across internal combustion, hybrid and electric vehicles, with compact high and low mount designs aimed at optimizing interior packaging, efficiency and next generation cabin concepts (Key Developments).
  • Enhanced safety features in the Direct Drive Hand Wheel Actuator include a rigid connection structure, built in redundancy and high precision multi channel angle sensing for greater steering accuracy, diagnostics and system robustness (Key Developments).
  • Nexteer plans to showcase its Motion by Wire portfolio, including Steer by Wire, Rear Wheel Steering, Brake by Wire and its MotionIQ Software Suite, at MOVE America in Detroit on September 24–25, highlighting its role in software defined chassis development (Key Developments).
  • The MotionIQ Software Suite is designed to integrate with Nexteer’s Electric Power Steering, columns and driveline solutions to deliver precise motion control, faster chassis development and advanced predictive maintenance across passenger and commercial vehicle markets (Key Developments).

Valuation Changes

  • The fair value estimate has risen slightly to approximately HK$9.94 from about HK$9.79 per share.
  • The discount rate has increased modestly to about 7.81 percent from roughly 7.44 percent, reflecting a slightly higher required return.
  • The revenue growth assumption has been raised marginally to around 11.21 percent from about 10.74 percent.
  • The net profit margin forecast has improved slightly to roughly 4.50 percent from about 4.37 percent.
  • The future P/E multiple has edged down slightly to approximately 14.67x from about 14.89x.

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