-- Aptiv (APTV) stock sell-off post Q1 results was unwarranted and likely driven by the lower-than-expected Q2 guide and rising cost pressures with 2026 more back-half weighted that appears like a steep ramp, UBS said in a Wednesday research report.
While Q2 is impacted by "stranded cost" and Ford Motor (F) volume timing, H2 ramp looks more achievable than optics suggest amid positive developments in China and the non-auto segments, analysts wrote.
The company expects positive growth from China in Q2, driven by new programs and normalization of production at key customer, the brokerage stated.
Commodity headwinds should abate in H2 as recoveries lag, UBS said.
The brokerage said it reiterated its buy rating on the stock and price target of $80 per share.
Aptiv shares were up 4% in Wednesday trading.
Price: $56.47, Change: $+1.64, Percent Change: +2.99%