Raising PT To $135 Post An Overall Solid CMD Albeit With Some Puts/Takes

研报英文原文证据摘录

Raising PT To $135 Post An Overall Solid CMD Albeit With Some Puts/Takes

TD Cowen Visteon Corporation

Global Research June 29, 2026

VALUATION METHODOLOGY AND RISKS

Valuation Methodology

Automobile Components:

Our valuation methodology for auto suppliers is an equal-weighted average of P/E and EV/

EBITDA. In certain cases, we may also supplement our primary methodology with other

valuation metrics including EV/revenue or DCF.

Investment Risks

Supplier revenue and profitability is largely tied to global vehicle production, which can be

affected by end-market demand, changes in automaker inventory levels and shifting automaker

market share. Revenue volatility can also come from changes in vehicle trim-mix (affecting

content-per-vehicle), technology adoption trends (EV/ADAS, etc.), customer/regional mix, FX,

customer price-downs and commercial settlements. Additional risk factors include government

regulations (including tariffs), geopolitics, supply-chain volatility, new competition, labor

disruptions, raw material volatility, recall risks and execution risks.

Risks To The Price Target

Downside

■ Tariff risks and related customer recoveries/negotiations

■ Automotive production downside and volatility

■ Adverse revenue mix (customer, region, powertrain, trim/content) and FX volatility

■ Automaker sourcing delays could diminish medium-term revenue growth

■ Less robust execution on internal margin initiatives

■ Competitive risks including those from newer suppliers such as in China

■ Labor disruptions both at the company and at key customers

■ Raw material cost inflation, including memory costs

■ Significant execution risk in launching new programs

■ Labor disruptions, both at the company and at key customers

■ Supply chain volatility