Update shared on11 Sep 2025
Fair value Increased 1.76%Aptiv's consensus price target has been modestly raised to $86.50, reflecting analysts’ increased confidence driven by strong operating results, diversification beyond autos, and positive industry fundamentals.
Analyst Commentary
- Resilient operating results and exposure to secular growth trends in advanced driver-assistance systems (ADAS).
- Increased diversification into non-auto end markets supporting long-term growth prospects.
- Improved industry fundamentals leading to higher earnings estimates and price targets.
- Expectation that auto suppliers, including Aptiv, will generally beat earnings expectations in Q2 and have reasonable visibility for Q3.
- Preference for suppliers over automakers due to elevated uncertainty in the automotive sector for the second half of 2025.
What's in the News
- Aptiv plans to split into two companies, with one focusing on high-growth safety and software solutions and the other on slower-growth electrical distribution systems, aiming to unlock shareholder value and attract higher multiples (Barron's, 2025-08-27).
- The separation is expected to be completed in Q1 2026, allowing both entities to allocate capital more effectively and address the market's "perception problem" of Aptiv as a traditional auto parts supplier (Barron's, 2025-08-27).
- Aptiv recently held an Analyst/Investor Day to communicate its strategy and outlook to the financial community (Key Developments, 2025-09-02).
- The company has completed a significant share repurchase, buying back 19.15% of shares outstanding for a total of $3.96 billion since August 2024, which may support earnings per share and signal management's confidence (Key Developments, 2025-07-31).
- Guidance for 2025 includes full-year net sales of $20.0–$20.3 billion and diluted EPS of $4.40–$4.70, reflecting continued growth and operational strength (Key Developments, 2025-07-31).
Valuation Changes
Summary of Valuation Changes for Aptiv
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from $85.00 to $86.50.
- The Future P/E for Aptiv remained effectively unchanged, moving only marginally from 9.90x to 10.08x.
- The Consensus Revenue Growth forecasts for Aptiv remained effectively unchanged, at 5.5% per annum.
Disclaimer
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