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Research Alert: CFRA Raises Opinion On Shares Of Adient Plc To Hold From Sell
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Research Alert: CFRA Raises Opinion On Shares Of Adient Plc To Hold From Sell
May 26, 2025 3:33 AM

04:30 PM EDT, 05/07/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We raise our 12-month target by $2 to $12, based on a FY 26 (Sep.) P/E of 6.0x and a justified discount to historic averages. We raise our FY 25 adjusted EPS estimate by $0.40 to $1.85, but lower FY 26 by $0.20 to $2.00. ADNT posted Q1 adjusted EPS of $0.69 vs. $0.54 (+28%), well ahead of the $0.33 consensus. The beat was driven by stronger-than-expected sales, as revenue fell 4% to $3.61B ($170M above consensus) and adjusted EBITDA margin expanded 40 bps to 6.5%. ADNT maintained prior FY 25 sales and adjusted EBITDA guidance of $13.9B and $850M, respectively (current consensus: $13.87B and $817M). At quarter-end, ADNT had $1.64B of net cash and it expects to generate $150M-$170M of positive free cash flow. The company refinanced $795M of senior unsecured notes due in 2026 during the quarter, extending its average maturity profile from 4.0 to 6.1 years. This debt refinancing helps alleviate liquidity concerns and the company has no near-term debt maturities. Consequently, we raise our opinion to Hold.

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