Risk Reward Update

Research evidence excerpt

Risk Reward Update

UpdateM

RiskRisk RewardReward– Autoliv- (ALV.N)Autoliv (ALV.N)

A high-quality supplier with balanced risk-reward

PRICE TARGET US$125.00 EQUAL-WEIGHT THESIS

We value Autoliv using a Sum of the Parts based on EV/EBIT multiples: 1) 11x EV/EBIT for ▪We think Autoliv could weather the still

Airbags, Steering Wheels and Other and 2) 7x EV/EBIT for Seatbelt products and Other on negative OEM margin cycle and China

our FY26 forecasts - the premium reflects strong cash generation and low legacy risk. competition better than peers, given its

defensive product nature, with less US$135.31

imminent competition, a well-diversified

Consensus Price Target Distribution US$118.00 US$148.00 customer portfolio and balanced geographic

MS PT

mix.Source: Refinitiv, Morgan Stanley Research Mean Morgan Stanley Estimates ▪We see room for additional gradual

medium-term margin expansion, given

stabilizing call-off accuracy and Europe

RISK REWARD CHART restructuring and the company's disciplined

cost control and R&D efficiency measures,

which should continue to gradually bear

USD fruit into the next few years.

it is the best performing share price US$150.00US$150.00(+27.65%)US$150.00(+27.65%)(+27.65%) ▪But

160 over the last couple of years, and risk-

reward appears quite balanced, with

multiples in line with historical levels and far

US$125.00US$125.00(+6.37%)US$125.00(+6.37%)(+6.37%) above peers. 120 US$117.51US$117.51US$117.51

Consensus Rating Distribution

US$90.00US$90.00(-23.41%)US$90.00(-23.41%)(-23.41%)

70% Overweight

30% Equal-weight

0% Underweight

MS Rating

0 Source: Refinitiv, Morgan Stanley Research

JUL '25 JAN '26 JUL '26 JUL '27

Key: Historical Stock Performance Current Stock Price Price Target

Risk Reward Themes

Source: Refinitiv, Morgan Stanley Research