Baird Reiterates Outperform on Aptiv (APTV) Amid Improving Auto Trends

Aptiv PLC (NYSE:APTV) is one of thebest electric vehicle supply chain stocks to buy right now. On September 3, Baird analyst Luke Junk maintained his Outperform rating on Aptiv PLC (NYSE:APTV), while increasing his 12-month price target from $84 to $97. That is an implied upside of 20.91% based on the market price of $80.22 on September 5.

Baird Reiterates Outperform on Aptiv (APTV) Amid Improving Auto Trends

Junk said that he adjusted his price targets in the vehicle technology and mobility group to reflect a positive stance on cyclical names. The analyst is increasingly bullish on the group, citing “less bad” auto trends, sector rotation potential, and “undemanding” valuations.

Aptiv, which provides electrical architecture and software systems that enable EVs to function efficiently, is trading at a forward P/E of 17.14x, which is reasonable as analysts expect revenue to grow by an average of 8.87% on a compounded annual basis over the next 5 years.

At the recent J.P. Morgan Auto Conference, Aptiv said that it is focused on reducing dependency on certain markets. Additionally, the company is working on improving real-time visibility and control.

While we acknowledge the potential of APTV to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than APTV and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.