David Tepper Initiated Buying These 5 Stocks for the Rest of 2022

4. Aptiv PLC (NYSE:APTV)

Number of Hedge Fund Holders: 43

Aptiv PLC (NYSE:APTV) is an Irish-American automotive technology company based in Dublin, Ireland. Appaloosa Management made the company a part of its portfolio in the second quarter of 2022 with 250,000 shares valued at $22.26 million, making up 1.39% of the fund’s portfolio.

On September 12, Aptiv PLC (NYSE:APTV) announced the acquisition of an 85% stake in Intercable Automotive Solutions for €595 million, subject to customary post-closing adjustments. The Mutschlechner family was the founding family of Intercable Automotive Solutions and will keep a 15% stake in the business. The company is expected to generate €250 million in revenue by the end of 2022 and will also be significant to Aptiv PLC (NYSE:APTV)’s 2023 EPS. 

On September 9, BofA analyst John Murphy maintained a Buy rating on Aptiv PLC (NYSE:APTV) shares and lowered the price target to $158 from $165. The analyst added that the supply chain constraints will likely affect 2023 automotive sale volumes and the macro environment has become a “greater risk.” The analyst believes that the peak in auto demand will likely hit in 2028 instead of 2025.

Here is what ClearBridge Investments has to say about Aptiv PLC (NYSE:APTV) in its Q1 2022 investor letter:

“The acceleration in electrification of transport should support electric vehicle (EV)-related stocks like Aptiv (NYSE:APTV), which came under pressure in the quarter on concerns the auto cycle is past its peak. Aptiv provides a range of solutions for the auto industry, including autonomous driving technologies, safety technologies, components, and wiring. The large exposure of APTV to EVs should lead to long-term value as EVs continue their growth, boosted by their relative attractiveness as prices at the pump hit near-historic highs.”