DLPH - Delphi Technologies: Near-Term Weakness Does Not Alter Our Positive Long-Term Outlook

Investment Thesis

Delphi Technologies (DLPH) delivered a poor Q2 2019 due to weakness in global auto market. Despite near-term weakness, we think Delphi will continue to benefit from the trend towards lower vehicle emissions. In addition, its power electronics product should continue to do well thanks to increasing electronic content in vehicles. Delphi is currently trading at an attractive valuation. However, we are likely well past the peak of the current auto cycle. Therefore, we think investors may want to wait on the sideline as visibility is still low in the near-term.

Data