Adient assumed with a Peer Perform at Wolfe Research

Wolfe Research analyst Emmanuel Rosner initiated coverage of Adient with a Peer Perform rating. The company has been nearly the worst-performing auto supplier year-to-date due to cuts, negative estimate revisions, and multiple contraction, though at the current valuation, the stock is pricing in a y/y decline in earnings in 2025, which is incorrect, the analyst tells investors in a research note. Wolfe sees a path to FY25 EBITDA of $930M, which is in-line with sell-side consensus, but above the buyside and what is being priced into the stock, the firm states, warning however that longer term it sees challenges from shifting market dynamics related to customer mix, share loss, and potential disintermediation.