Investment Thesis
Delphi Technologies (DLPH) finished its 2019 with a declining top and bottom line. The recent outbreak of COVID-19 is expected to significantly lower the demand for its products in 2020 and 2021. Its merger with BorgWarner (BWA) may need to be renegotiated due to the sharp drop in its market valuation lately. Despite near-term challenges, we think Delphi will continue to benefit from the trend towards lower vehicle emissions. In addition, its power electronics product should continue to do well thanks to increasing electronic content in vehicles. Delphi is