Autoliv (ALV) Drives Some Near Term Optimism Despite Affordability Concerns

Autoliv Inc (NYSE:ALV) is one of the best Auto Parts stocks according to Hedge Funds.

On January 14, Baird analyst Luke Junk reaffirmed his Neutral rating for Autoliv Inc (NYSE:ALV). The analyst, however, raised his price target for the stock from $133 to $137.

Junk’s upward revision was part of Baird’s broader adjustments across vehicle technology and mobility group, in line with the fourth quarter results preview. The firm remains selective in its picks over the short run, given some skepticism regarding supply chain disruptions that are having an impact on auto affordability.

On January 12, Emmanuel Rosner from Wolfe Research maintained an Outperform rating on Autoliv Inc (NYSE:ALV), with a downward revision of the price target from $149 to $143. Despite the revision, the estimates still lead to over 13% upside from the current level.

Rosner reflected on the potential for management to share its 2026 guidance that might exceed Wall Street consensus. Based on underlying drivers such as automation, digitalization, headcount reductions, CPV growth, and productivity gains, he anticipates 2026 guidance of roughly 11% in adjusted operating margins, compared to consensus estimates of 10.8%.

Autoliv Inc (NYSE:ALV) is the largest supplier of automotive safety systems in the world, predominantly serving car manufacturers. It delivers passive safety systems as well as mobility safety solutions. Some of the offerings include airbags, seatbelts, pedestrian protection, inflator technologies, and battery cut-off switches.

While we acknowledge the risk and potential of ALV as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ALV and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.