SB1 Markets repeats Buy for Autoliv with an unchanged price target of SEK 1,390 ahead of the report on October 23.
The research house expects a weak third quarter and an adjusted EBIT margin of 9.3 percent, down from the previous forecast of 9.4 percent. The earnings forecast is 1 percent below consensus. Organic sales growth is expected to be 1 percent.
SB1 sees some risk that Autoliv will not reach its full-year forecast of an adjusted EBIT margin of 10.5–11.0 percent. To reach the range, the margin needs to exceed 14 percent in Q4. SB1 expects 14.2 percent.
At the same time, the research house assesses that the risk of a forecast cut is largely priced in and highlights strong cash flow and continued share buybacks as support for the stock.
