As previously reported, KeyBanc analyst James Picariello upgraded Adient to Sector Weight from Underweight as he believes the challenged near-term earnings backdrop is now largely contemplated. With Adient's earnings and share price performance playing out as the analyst had expected, he considers the next major downside risk event to be the company's recently amended credit facility. His analysis supports the company's ability to avoid violating its bank-defined covenant of 2.5 times, with Q3 likely representing trough EBITDA and peak net leverage of 2.4 times.