-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
We lower our 12-month target by $2 to $24, based on a FY 27 (Sep.) P/E of 8.3x, a justified discount to ADNT's historical multiples. We lower our adjusted EPS estimates to $2.15 from $2.25 for FY 26 and to $2.90 from $3.10 for FY 27. After ADNT's earnings beat and slightly increased FY 26 guidance, we lower our estimates and price target and maintain a Hold opinion on the shares. ADNT posted Q2 FY 26 adjusted EPS of $0.52 vs. $0.69 (-25%), well ahead of the $0.44 consensus. The beat was attributed to stronger-than-expected sales, as revenue rose 7% to $3.87B ($230M ahead of consensus) and adjusted EBITDA margin contracted 70 bps to 5.8% (in line). We see more attractive risk/reward potential in auto suppliers with greater exposure to higher-growth segments of the market than seating (e.g., autonomous driving software or displays) and see margin pressures persisting for the next few quarters, highlighting that its highest-margin region (Asia) is experiencing the greatest headwinds.