VC - Visteon Corporation stock carries higher after JP Morgan upgrade

JP Morgan moved away from its bearish perspective on Visteon Corporation ( NASDAQ: VC ) on Monday, helping shares move upward in premarket action.

The bank’s analysts shifted their rating on the stock from “Underweight” to “Equal-Weight” on Monday, while raising its price target to $129 from a prior $112.

“Visteon stands out as a pure play on the expected growth in cockpit electronics content per vehicle, including both driver information systems and infotainment systems, and stands to benefit from the ongoing confluence of these systems as well as the continued reduction in electronic control units that it can help foster through its SmartCore product,” the note explained. “We expect this leverage to the faster growing cockpit electronics market to result in above-peer growth over market, although this is balanced by a below-peer margin profile.”

The team of analysts added that battery management systems exposure should offer “another avenue of growth” for the Michigan-based automotive supplier. Visteon Corporation ( VC ) stock rose 1.3% in premarket trading on Monday.

Nonetheless, the “elevated valuation” of shares after an over 20% gain in the past year was enough to give the team pause. As such, a move to a Buy-equivalent rating was viewed as imprudent at present.

Read more on Wells Fargo’s view of auto suppliers .

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