4 Things KeyBanc Likes About The New Delphi Technologies
Delphi Automotive’s spinoffs are doing just fine on their own. Not 10 days into its independent life, Delphi Technologies PLC (NYSE: DLPH) earned its fifth Buy rating with expectations of reclaiming its recent stock concessions.
The Rating
KeyBanc Capital Markets analysts Brett Hoselton and Irina Hodakovsky initiated coverage Friday with an Overweight rating and a $61 price target.
The Thesis
KeyBanc expects production growth across every continent to support 1- to 2-percent compound annual growth rates for Delphi Technologies over the next few years, while client expansion in new business segments pushes CAGR 1 to 2 percent above the industry average.
Meanwhile, volume leverage and cost savings could drive a 50-basis point annual margin expansion and enhance earnings per share growth.
“We believe EPS upside is possible, driven by strategic acquisitions to enhance technology portfolio and accelerate growth in electrification, as well as potential for opportunistic share repurchases,” Hoselton and Hodakovsky wrote in a note.
The analysts forecast fourth-quarter EPS of $1.11 with revenue of $1.238 billion.
Price Action
At time of publication, Delphi Technologies was set to open at $49.
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Latest Ratings for DLPH
Dec 2017 | KeyBanc | Initiates Coverage On | Overweight | |
Dec 2017 | PiperJaffray | Initiates Coverage On | Neutral | |
Dec 2017 | Bank of America | Initiates Coverage On | Neutral |
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