VC - Visteon Corporation cut to Hold as Guggenheim on valuation concerns

Visteon Corporation ( NASDAQ: VC ) was downgraded to Neutral from Buy at Guggenheim after the company's Q4 report on Thursday.

Equity analyst Ronald Jewsikow explained that “upside from current levels is challenging” after a stark run for the stock since 2020 that has accelerated sharply to start 2023. Shares of the Michigan-based manufacturer have risen over 25% year to date.

“We are downgrading shares of VC to Neutral from Buy, primarily as a result of what we view as a relatively full valuation and the potential for optically weaker 1H23 results that we expect to leave shares range bound,” Jewsikow told clients.

He added that while an investor day on March 7 will likely highlight strong growth characteristics of the business, much of that upside is already priced in. With the stock now trading in line with industry peers, Jewsikow stepped to the sidelines and withdrew his price target on the stock.

Shares of Visteon Corporation ( VC ) fell 2% shortly after Friday’s market open.

Read more on the company’s recent earnings results .

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