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Adient (ADNT) has attracted fresh attention after recent trading, with the stock closing at $21.59 and showing mixed short term performance, including a 2.9% decline over the past day and a 3.4% decline over the past week.
See our latest analysis for Adient.
That latest pullback comes after a 13.4% year to date share price return and an 11.5% 1 month share price return. The 1 year total shareholder return of 19.0% contrasts with weaker 3 and 5 year total shareholder returns, suggesting shorter term momentum has picked up after a tougher few years.
If Adient has you looking closer at auto suppliers, it can be useful to widen the lens and check out other auto manufacturers that might be setting up interesting opportunities.
With Adient trading at $21.59, below an analyst price target of $25.05 and following a recent year-to-date rebound but weaker multi-year returns, is this a genuine value gap or is the market already pricing in future growth?
Adient’s most followed narrative points to a fair value of $24.75 per share, above the recent close at $21.59, which puts the current price against a richer long term story built on earnings and margin recovery.
Analysts are assuming Adient’s revenue will grow by 1.6% annually over the next 3 years.
That fair value hinges on a slow revenue climb, a swing from losses to profits, and a future earnings multiple that sits below the wider auto components group. Curious how those pieces fit together into $24.75 per share?
Result: Fair Value of $24.75 (UNDERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
However, this story can be knocked off course if margin recovery in Europe drags, or if volume and pricing pressure in China persist for longer than analysts expect.
Find out about the key risks to this Adient narrative.
If this version of the story does not fully line up with your own view, you can stress test the assumptions yourself and build a custom narrative in just a few minutes, then Do it your way.
A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding Adient.
If Adient has you thinking more broadly about your portfolio, this is the moment to widen your search and pressure test fresh ideas before the market moves.