Why This Aptiv Analyst Turns Bearish After The Deal Between Rivian, Volkswagen
Portfolio Pulse from Priya Nigam
Piper Sandler downgraded Aptiv PLC (NYSE:APTV) from Neutral to Underweight, reducing the price target from $78 to $63, due to a joint venture between Rivian Automotive Inc (NASDAQ:RIVN) and Volkswagen (OTC:VWAGY) focusing on in-house electrical architecture. This move signals a shift away from third-party suppliers like Aptiv.
June 26, 2024 | 4:48 pm
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POSITIVE IMPACT
Rivian's joint venture with Volkswagen to develop in-house electrical architecture is seen as a strategic move to reduce reliance on third-party suppliers. This could enhance Rivian's control over its technology and potentially lower costs.
The joint venture with Volkswagen allows Rivian to develop its own electrical architecture, which could improve efficiency and reduce costs. This strategic move is likely to be viewed positively by investors.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
NEUTRAL IMPACT
Tesla is mentioned as one of the companies that have realized the need to develop their own electrical architecture. This trend could impact third-party suppliers like Aptiv.
Tesla is mentioned in the context of a broader industry trend towards in-house development of electrical architecture. While this is not new information, it reinforces the shift away from third-party suppliers.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 30
NEGATIVE IMPACT
Piper Sandler downgraded Aptiv from Neutral to Underweight, reducing the price target from $78 to $63. The downgrade is due to a joint venture between Rivian and Volkswagen focusing on in-house electrical architecture, which could reduce reliance on third-party suppliers like Aptiv.
The joint venture between Rivian and Volkswagen to develop in-house electrical architecture suggests a shift away from third-party suppliers like Aptiv. This could negatively impact Aptiv's business, leading to the downgrade and reduced price target.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100