2024-03-08 05:16:45 ET
Summary
- Adient plc faces ongoing macro uncertainty, impacting its ability to meet forward-looking growth projections.
- The company experienced a fiscal 2024-Q2 earnings miss, although internal trends look promising.
- Shares look like they are undergoing a bottoming pattern, although more evidence is needed before turning bullish.
Intro
We wrote about Adient plc ( ADNT ) back in May of last year when we stated that ongoing macro uncertainty had to stack up for the company so forward-looking growth projections could indeed be met. We rated Adient a 'Hold' at the time of writing. The company was just off the back of a fiscal 2023-Q2 earnings miss, which resulted in the share price continuing its pattern of lower lows. Although shares did manage to bottom roughly one month post the Q2 announcement in May of last year as we see below, this rally did not last long in that shares tested the $30 level in November of last year. The subsequent rally out of these lows has brought back shares above the $34 mark, meaning the return has been flat (0%) over the past 10 months. This validates our 'Hold' rating at the time, especially considering the S&P500 has returned 24%+ over the same timeframe. (Sizable opportunity cost if one was long the stock in this timeframe)....
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For further details see:
Adient: Positive Internal Trends Point To A Potential Near-Term Multi-Year Bottom