Aptiv downgraded to Underweight from Equal Weight at Morgan Stanley

Morgan Stanley downgraded Aptiv to Underweight from Equal Weight with a price target of $74, down from $90. The company’s portfolio is built for rapid EV adoption, but a slowdown in demand for EVs and legacy OEMs’ willingness to build them challenges Aptiv’s growth-over-market assumption that underpins its earnings and valuation, the analyst tells investors in a research note. The firm further cites the company’s rising capex and FY24 free cash flow outlook that was about $300M less than expected.