Morgan Stanley downgrades Delphi to Equal Weight on lack of visibility
As previously reported, Morgan Stanley analyst Armintas Sinkevicius downgraded Delphi Technologies to Equal Weight from Overweight following the "surprise" CEO transition, stating that the reasons for the change at the top are not clear. He finds it hard to recommend a stock after a significant negative revision to guidance when the company does not have a permanent CEO, Sinkevicius tells investors. After management lowered its guidance for adjusted operating income by over 20% for the second half of 2018, Sinkevicius said he does not see significant improvement into 2019 and cut his own estimates for 2019 adjusted operating income by about 25%. He lowered his price target on Delphi shares to $30 from $52.