Nordea repeats its Hold rating on automotive safety company Autoliv with a price target of SEK 1,070, while Bank of America repeats its Buy rating but lowers its price target to USD 125 from USD 134, corresponding to approximately SEK 1,241.
Both banks point out that adjusted operating profit in Q3 exceeded expectations, partly thanks to higher revenues from development work for automakers. Autoliv’s margin forecast for 2026 has, however, been narrowed to around 10.5 percent, requiring a substantial improvement in earnings during the fourth quarter.
Nordea sees risks from weaker vehicle demand and rising raw material costs. Bank of America shares the caution regarding the margin target but believes that Autoliv’s strong market position and the remaining share buybacks worth USD 1.9 billion limit the downside.
