Goldman Sachs Cuts Aptiv Price Target Amid China Demand Concerns
Aptiv (APTV) has ended a four-month streak of losses, but Goldman Sachs warns of new risks to demand. The investment firm lowered its price target for Aptiv to $61 from $71, though it kept its Buy rating. The adjustment reflects concerns about weaker vehicle sales in China, which could pressure auto suppliers even as global light-vehicle production remains stable.
Goldman Sachs anticipates mixed third-quarter results for traditional automotive Tier 1 suppliers, with some reports potentially falling below consensus estimates. The firm notes that while global light-vehicle production is consistent with earlier projections of a low-single-digit annual decline, weaker domestic sales in China may create additional challenges for companies with exposure to that market.
Aptiv specializes in software and hardware for the automotive and transportation sectors. Its Signal and Power Solutions unit produces wiring systems and electrical components for electric vehicles (EVs), while its Advanced Safety and User Experience unit develops technologies like radar, cameras, and self-driving features. Recently, Aptiv began mass production of a new ADAS smart camera for a Chinese EV maker, supporting Nvidia’s Jetson Orin Nano 2 to help deploy AI and edge-AI systems in real-world applications.
Retail sentiment on Stocktwits has shifted to bearish from neutral, and APTV stock has dropped 31% year-to-date.