Visteon Corp. Could Capital Return Story be Underappreciated?

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Visteon Corp. Could Capital Return Story be Underappreciated?

Global Research

23 July 2026ab

Visteon Corp. Equities

United StatesCould Capital Return Story be

Underappreciated? Auto Parts

12-month rating Buy

12m price target US$130.00Encouraged by improved messaging on capital returns. Our big takeaway from

VC’s 2Q26 results was that the capital return story is underappreciated. VC announced a

$200mm ASR which will use remainder of existing 2023 authorization and a meaningful Price (23 Jul 2026) US$100.11

portion of their new $800mm authorization announced at their recent investor day. RIC: VC.O BBG: VC US

Management mentioned they intentionally matched the completion window of the ASR

(early 4Q26) with their 2H cash generation giving them flexibility to execute capital Trading data and key metrics

returns in excess of the ASR (i.e. expect them to be back in market in 4Q). Given the 52-wk range US$128.76-84.45

inexpensive valuation (5x 27 EV/EBITDA), we believe this is a good use of cash. A lot Market cap. US$2.67b

more is possible and we see the potential for VC to continue to be active in the Shares o/s 26.7m (COM)

repurchase market which should support the shares (similar DAN in 25 to early 26). Free float 100%

Current cash (pre-handing over $200mm for ASR) is $650mm well above minimum cash Avg. daily volume ('000) 617

of $150mm. VC also expects to generate cumulate $1bn of FCF over 2026-29. Dividend Avg. daily value (m) US$68

may cost cumulative ~$0.1bn over that time, but otherwise that suggests VC can Common s/h equity (12/26E) US$1.48b

repurchase ~$1.4bn or 52% of current market cap. Further, VC is currently running 0.8x

P/BV (12/26E) 1.7x

net cash/LTM EBITDA and we have them consistently in a net cash position through our

Net debt to EBITDA (12/26E) NM