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Autoliv (NYSE:ALV) Valuation Check After Analyst Buy Reaffirmation and Dividend Increase

Simply Wall St · 22h ago

Autoliv (ALV) is back in focus after a major Wall Street analyst reaffirmed a Buy rating and the company raised its quarterly dividend. These moves signal continued confidence in its cash flows and long term earnings trajectory.

See our latest analysis for Autoliv.

Those bullish signals come after a strong run, with the stock now trading around $121.32 and delivering a robust year to date share price return. At the same time, multi year total shareholder returns suggest momentum has been building rather than fading.

If this mix of earnings confidence and dividend strength has your attention, it is also worth exploring how other auto suppliers and manufacturers are priced by screening auto manufacturers today.

With Autoliv trading not far below analyst targets yet still at a sizeable discount to some intrinsic value estimates, investors now face a key question: is there still a buying opportunity here, or is future growth already priced in?

Most Popular Narrative: 12.2% Undervalued

Compared with Autoliv's last close at $121.32, the most followed narrative points to a higher fair value, anchored in steady growth and margin expansion expectations.

Heightened global focus on vehicle safety and increasingly strict automotive safety regulations are driving higher safety content per vehicle, which is expected to support sustained top line growth and incremental margin improvement as Autoliv leverages its leadership in advanced airbags and seatbelts.

Read the complete narrative.

Want to see the math behind that upside case? The narrative leans on disciplined revenue growth, firmer margins, and a future earnings multiple that challenges today’s pricing. Curious which assumptions really move the fair value dial?

Result: Fair Value of $138.12 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, slowing global vehicle production and persistent pricing pressure from powerful automaker customers could quickly undermine Autoliv’s margin expansion and earnings growth assumptions.

Find out about the key risks to this Autoliv narrative.

Build Your Own Autoliv Narrative

If you see the story differently, or want to dig into the numbers yourself, you can quickly build a personalized view in just minutes: Do it your way.

A great starting point for your Autoliv research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.