Best Smidcap Ideas: Attractive Risk/Reward For Auto-Tech Megatrends Exposure

研报英文原文证据摘录

Best Smidcap Ideas: Attractive Risk/Reward For Auto-Tech Megatrends Exposure

TD Cowen Automobiles & Components: Automobile Components

Global Research

Visteon Corporation

TD SECURITIES (USA) LLC BEST SMIDCAP IDEAS 2026

Price: $113.81 (06/18/2026) Best Smidcap Ideas: Attractive Risk/Reward

Price Target: $130.00 For Auto-Tech Megatrends Exposure

BUY (1)

ESG SCORE: 64/100

Itay Michaeli THE TD COWEN INSIGHT

646 562 1412

Visteon is our Best Smidcap Idea. VC is well-positioned within the cockpit electronics vertical,

itay.michaeli@tdsecurities.com

which benefits from a number of auto megatrends. We expect a return to mid/high single-

Justin Barell digit revenue growth starting next year, with a unique high-quality contribution from new

646 562 1377 customers, verticals, and products. A net cash balance sheet provides for ample cap

justin.barell@tdsecurities.com

allocation upside potential. $130 PT.

Selina Liu

646 562 1449 Summary Of Our Thesis

selina.liu2@tdsecurities.com

Visteon offers attractive risk/reward within vehicle cockpit electronics, which includes digital

Key Data instrument clusters, domain controllers, displays, and infotainment. Cockpit electronics

Symbol NASDAQ: VC

content, which spans both HW & SW, is benefiting from a number of megatrends such as

Beta: 1.27 autonomy, electrification, and AI. Recent years' bookings suggest revenue growth is poised to

52-Week Range: $128.76-$84.45 return to a mid-to-high single-digit range starting next year, which we view as sustainable for

Market Cap: $3.0B years to come. Not only does this growth compare favorably with peers, but it's also of high

Net Debt (MM): $(246.0) quality as it's being led by new customers (Toyota), end-market expansion (two-wheelers, CV)

Cash/Share: $7.77 and local Chinese automakers (HPC).