UBS analyst Colin Langan downgraded Adient (ADNT) and Lear (LEA) to Neutral from Buy and Visteon (VC) to Sells from Neutral as part of a broader sector research note. The analyst says he was previously bullish on the group in hopes of easing trade tensions, which are "not looking good now", and the prospects of a China recovery, which looks "even worse". In addition to these factors, the industry has faced negative news around "surprising margin weakness", risks of increased price concessions, and rising recession possibility. Langan notes that despite these headwinds, U.S. auto suppliers are still up 25% year-to-date even though the average 2019 earnings estimates on the group are down 22%. As part of the downgrade, the analyst cut his Adient price target to $27 from $30, Lear to $135 from $158, and Visteon to $61 from $66.

Sees 2024 adjusted EBITDA $470M-$500M and adjusted free cash flow $155M-$185M.

Reports Q1 revenue $933M, consensus $977.87M. "Our first quarter results highlight our continued progress on addressing the megatrends of digitalization and electrification that are rapidly changing the automotive industry. I am very proud of our continued operational execution and launching a high number of new products across the globe to support our customers and deliver near-term growth," said CEO Sachin Lawande. "We are also strengthening our future with another strong quarter of new business wins across our digital cockpit products while further diversifying into adjacent end markets."