EV Market Might Be Gloomy, But Morgan Stanley Says This Company Might Be a Cash Gushing Machine
Portfolio Pulse from Lekha Gupta
Morgan Stanley analyst Adam Jonas initiated coverage on Phinia Inc (NYSE:PHIN) with an Overweight rating and a $50 price target, citing the company as a 'cash gushing machine' despite the gloomy EV market. Jonas highlights Phinia's strong financials, including stable top-line, above-peer margins, minimal leverage, and forecasts over $200 million in free cash flow starting in 2025, with the majority being returned to shareholders through dividends and buybacks. He also notes a low China exposure and estimates significant EPS growth from FY24 through FY26.
March 12, 2024 | 6:47 pm
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Morgan Stanley's Adam Jonas initiated coverage on Phinia Inc with an Overweight rating and a $50 price target, highlighting its potential as a strong investment despite the current EV market challenges. The company is expected to generate substantial cash flows and return a significant portion to shareholders.
The positive outlook from Morgan Stanley, especially with a high price target and Overweight rating, is likely to instill confidence in investors about Phinia's financial health and growth prospects. The emphasis on strong cash flow, minimal leverage, and shareholder returns are key factors that could drive the stock price up in the short term.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100