Aptiv Stock Fetches Upgrade Ahead Of Q4 Print, But Retail Confidence Is Slipping

HSBC says that the company is returning to growth and that consensus estimates are “low enough” for Aptiv to start delivering positive surprises.

Shares of Aptiv PLC edged up nearly 0.4% in premarket trading Tuesday, bouncing slightly after two consecutive losing sessions.

Two days before its fourth-quarter (Q4) earnings report, the auto supplier received a bullish call from HSBC. 

The brokerage upgraded Aptiv to ‘Buy’ from ‘Hold’ and raised its price target to $77 from $63, arguing that the company is returning to growth and that consensus estimates are “low enough” for Aptiv to start delivering positive surprises.

Last month, Aptiv announced plans to split into two companies. One will focus on electrical systems, while the other will sell “sensor-to-cloud tech solutions,” including software and hardware for autonomous driving. 

The company aims to expand beyond the automotive sector, leveraging its sensing technology and software for other industries.

Aptiv is a major supplier of electrical components to automakers, with a more substantial presence in the EV and hybrid markets than in traditional gas-powered vehicles. 

Despite the HSBC upgrade, retail sentiment on Stocktwits turned ‘bearish’ early on Tuesday from ‘neutral’ a month ago, reflecting increased caution among traders. Aptiv shares have gained only 1% year-to-date.

There have been some worries recently owing to President Donald Trump’s plans to roll back pro-EV policies and impose tariffs on key trading partners.

On Monday, Raymond James reportedly downgraded Aptiv to ‘Market Perform’ from ‘Outperform’ and cut estimates well below consensus, citing ongoing auto industry challenges and concerns over potential tariff impacts. 

He said that while Aptiv has underperformed broader markets since its early 2022 peak, the stock has remained resilient. 

However, the analyst believes the shares will remain range-bound until the planned Electrical Distribution Systems business spin-off in late 2025.

Aptiv stock trades at a forward price-to-earnings (P/E) ratio of 9x and a trailing multiple of 6.7x. According to Koyfin data, the stock is currently trading about 28% below analysts’ average price target of $77.68.

Shares of the firm have lost more than 26% over the past 12 months.

Wall Street expects Aptiv’s Q4 adjusted earnings per share (EPS) to grow to $1.65 from $1.40 a year earlier and revenue to remain roughly flat at $4.9 billion.

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