Baird analyst David Leiker elevated Visteon to Fresh Pick and Top Idea following Q2 results. The analyst believes the sentiment has deteriorated and that beating expectations on near-term estimates will restore confidence and drive a 20% rally for the stock. He said the backlog still supports his intermediate revenue targets and that headwinds are not backlog related. Leiker reiterated his Outperform rating and $175 price target on Visteon shares.

Wells Fargo upgraded Visteon to Equal Weight from Underweight with a price target of $108, up from $106. The firm cites valuation and improving margins for the upgrade. Visteon screens well vs. peers as growth over market helps offset flat LVP, lower labor inflation risk, improving free cash flow and competitor disruption, though risks remain around battery electric vehicle growth and profitability, the analyst tells investors in a research note.

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."