Investment thesis
Adient's (ADNT) narrow focus on a low-value product, structural weakness in global automotive demand, and outbreak of Coronavirus make a strong case for lower prices. The company has embarked on selling non-core assets but this approach can only partially offset the headwinds.
A better quarter and untimely upgrade
Following a better than expected show in the first quarter earnings, Adient got an upgrade from Morgan Stanley. The Ireland-based automotive seating supplier divested and restructured some of its non-core businesses and this impressed Morgan Stanley analyst Adam Jonas. I'll explain in this