VC - Visteon draws cautious view from BofA due to valuation and competition

Bank of America reinstates coverage on Visteon (VC) with a Neutral rating. BofA says while Visteon's newer products like advanced digital cockpits and battery management systems are levered to industry mega-trends like vehicle connectivity and electrification and should drive reaccelerated topline growth and improved bottom line results, those benefits are said to be fairly reflected in the current valuation on the auto supplier. In addition, analyst Aileen Smith and team point to risk that the VC's core competencies are in component systems that remain crowded and fiercely competitive. BofA assigns a price objective of $139 to Visteon based on an EV/EBITDA multiple of ~11X off the 2022 estimates. Visteon laid out the stringent cost control measures and restructuring actions it has taken during the Q4 earnings call.

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Visteon draws cautious view from BofA due to valuation and competition