Update shared on 20 Nov 2025
Analysts have revised PHINIA's price target downward by $3 to $61, citing softer 2026 projections from the group's latest outlook.
Analyst Commentary
Following the recent update to PHINIA's outlook and revised price targets, analyst opinions remain mixed, with both optimism and caution reflected in their assessments.
Bullish Takeaways
- Recent upward price target revisions suggest some analysts see PHINIA’s valuation as supported by improved market multiples.
- Growth in production estimates for the auto supplier group has been incorporated into optimistic forecasts, indicating confidence in PHINIA’s operational execution.
- Current market trends continue to support the underlying business model. As a result, some analysts are maintaining or upgrading ratings despite shifting near-term projections.
- Analysts with a positive view highlight PHINIA’s ability to adapt its outlook and expectations in response to market conditions, demonstrating operational flexibility.
Bearish Takeaways
- Some analysts have lowered price targets due to more conservative 2026 earnings estimates, reflecting concerns over the sustained growth trajectory.
- The downward revision in outlook suggests potential challenges ahead for PHINIA in fully capturing anticipated sector growth.
- There is caution around the company’s ability to meet future estimates. The Neutral rating is maintained as a signal of valuation uncertainty.
- Cautious analysts point to risks from broader market volatility and evolving industry fundamentals that could limit upside in the near term.
What's in the News
- The Audit Committee approved Deloitte & Touche LLP as PHINIA's new independent auditor for fiscal year 2026, replacing PricewaterhouseCoopers LLP (Auditor Changes).
- PHINIA updated its earnings guidance for full year 2025, projecting net sales between $3.39 billion and $3.45 billion and net earnings between $100 million and $110 million (Corporate Guidance).
- The company completed a buyback of 540,940 shares between July and September 2025, reaching a cumulative total of 9,266,342 shares or 21.42% of shares repurchased since August 2023 (Buyback Tranche Update).
- PHINIA is actively seeking M&A opportunities to enhance its product offerings and expand in key sectors, as stated by CEO Brady Ericson during the Third Quarter 2025 Earnings Call (Seeking Acquisitions/Investments).
- PHINIA entered a settlement agreement with BorgWarner to resolve tax-related claims, resulting in scheduled payments totaling $78 million by the end of 2026 and potential receipt of up to $29 million in research and development tax credits (Lawsuits & Legal Issues).
Valuation Changes
- Fair Value remains unchanged at $59.20 per share.
- The discount rate has increased slightly from 9.09% to 9.57%.
- Revenue growth is marginally decreased, staying at 1.82%.
- Net profit margin is virtually unchanged, rising minimally from 8.21% to 8.21%.
- Future P/E has increased from 7.77x to 8.39x, suggesting higher expected valuation multiples.
Disclaimer
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