Autoliv's (ALV) major contract win with a Chinese automaker building vehicles in Europe helps counter disappointing 2026 guidance, RBC Capital Markets said Friday in a report.
The deal suggests Autoliv can supply a broader suite of safety components, reinforcing its competitive position, RBC said.
Management forecast 1% outgrowth in 2026, compared with the market consensus of 3.4%, reflecting weaker U.S. production, delays in battery-electric vehicle output, and EV-related pullbacks by major automakers, the report said.
RBC expects 2026 outgrowth of 2% and sees potential upside if the US-Mexico-Canada trade agreement issue is resolved in July and global production improves. RBC expects
RBC cut its price target on Autoliv stock to $141 from $146 and maintained its outperform rating.
Price: 120.80, Change: -0.44, Percent Change: -0.36