VC - Visteon could be 'largest ICE-to-EV transition winner' - Guggenheim

2023-05-17 08:32:12 ET

Visteon Corporation ( NASDAQ: VC ) stock rose in premarket action on Wednesday as Guggenheim shifted to Buy from Hold.

Equity analyst Ronald Jewsikow told clients he remains bullish on the stock despite a mixed earnings result earlier in the month. The post-earnings pullback has provided “an attractive re-entry point” in his view as the company is likely to capitalize on easing supply chain constraints and “better market appreciation for VC as a clear ‘ICE-to-EV’ winner.”

“We believe VC now has the most potential supply-chain revenue upside in our coverage (GNTX prior) with clear visibility to improvement in 1-2 quarters. We believe the market underappreciates how much VC is undershipping relative to customer demand,” Jewsikow concluded. “Importantly, based on our meetings we sensed confidence from the VC team related to supply of semiconductors throughout the balance of the year, with new silicon supply (automotive-grade nodes) coming to market in 2H. At a minimum, VC undershipments insulate guidance to the downside if LVP starts to soften from current levels.”

He assigned a $161 price target to the stock alongside the upgrade. Shares of Visteon ( VC ) rose about 2% before the bell as Jewsikow joined the bull camp .

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