RBC Capital Raises Price Target#
RBC Capital has increased its price target for Autoliv, Inc. (NYSE: ALV) shares from $137 to $138. The firm maintains an Outperform rating on the stock, which is currently trading at $118.92. Over the past week, shares have risen by 7.7%, and they have increased by 42% over the past year. Despite this growth, analysis suggests that the stock may still be undervalued.
Strong First-Quarter Performance#
The increase in the price target comes after Autoliv reported a strong first-quarter performance. The company benefited from favorable foreign exchange rates and growth in markets like China and India. RBC Capital's confidence in Autoliv's future led them to raise their financial estimates for 2026.
Future Growth and Margin Expansion#
RBC Capital projects long-term revenue growth for Autoliv between 4% and 6%. They also see potential for cost savings through automation, which could lead to improved profit margins. The firm has labeled Autoliv as the highest quality auto supplier in its coverage, noting its strong market position and superior products compared to competitors.
Financial Health and Recent Results#
Autoliv's financial strength is highlighted by its "GREAT" health score, indicating robust financial stability. The company has consistently paid dividends for 30 years. In its recent earnings report for the first quarter of 2026, Autoliv reported earnings per share (EPS) of $2.05, exceeding analyst expectations of $1.91. Revenue also surpassed forecasts, reaching $2.75 billion compared to the anticipated $2.61 billion. These results reflect Autoliv's operational efficiency and effective market strategy, although there have been no recent mergers or acquisitions, nor any upgrades or downgrades from analysts.