Baird Downgrades Visteon (VC) to Neutral

Baird analyst Luke Junk downgraded Visteon (NASDAQ: VC) from Outperform to Neutral with a price target of $120.00 (from $137.00).

The analyst comments: "While we previously moved VC to the bottom of our Outperform stack ranking, we now believe the wall of worry amid increased LVP risks is too steep to climb and recommend moving to the sidelines. We also see risk/reward as more balanced due to the meaningful acceleration in base business growth contemplated by full-year guidance. Finally, while we previously outlined our belief that valuation was unsustainably low, Tier 1 auto supplier valuations have broadly come under pressure LTM suggesting relief at VC specifically is also less likely in the near term. Bigger picture, we continue to believe the company should receive significant credit for navigating volatile supply chain conditions as well as (or better) than any other supplier in our universe, and still have a positive view of VC's strong secular positioning in digital clusters, cockpit domain controllers, and displays – but see these factors better paired with more stable production and potential multiple expansion at some point in the future."

For an analyst ratings summary and ratings history on Visteon click here. For more ratings news on Visteon click here.

Shares of Visteon closed at $108.72 yesterday.

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