Analyst Ratings For Adient

In the latest quarter, 9 analysts provided ratings for Adient ADNT, showcasing a mix of bullish and bearish perspectives.

The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.

The 12-month price targets, analyzed by analysts, offer insights with an average target of $28.89, a high estimate of $40.00, and a low estimate of $24.00. Highlighting a 10.78% decrease, the current average has fallen from the previous average price target of $32.38.

Understanding Analyst Ratings: A Comprehensive Breakdown

The perception of Adient by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Adient. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Unveiling insights, analysts deliver qualitative insights into stock performance, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Adient compared to the broader market.
• Price Targets: Analysts provide insights into price targets, offering estimates for the future value of Adient's stock. This comparison reveals trends in analysts' expectations over time.

Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of Adient's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.

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Delving into Adient's Background

Adient began trading Oct. 31, 2016, when Johnson Controls spun off its automotive experience segment into this new company. Adient is the leading seating supplier to the industry with about one third of the global market. Its share in China is now nearly 20%, down from about 45%, following the sale of its main joint venture there at the end of fiscal 2021. Unconsolidated seating revenue from joint ventures after factoring in the sale was about $3.8 billion in fiscal 2023 and consolidated China revenue was $1.4 billion. The company is headquartered in Ireland but has corporate offices in the Detroit area. Fiscal 2023 (Sept. 30 year-end) consolidated revenue, which excludes joint venture sales, was $15.4 billion and fiscal 2024 is forecast to about $14.6 billion.

A Deep Dive into Adient's Financials

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

Negative Revenue Trend: Examining Adient's financials over 3 months reveals challenges. As of 30 June, 2024, the company experienced a decline of approximately -8.36% in revenue growth, reflecting a decrease in top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Consumer Discretionary sector.

Net Margin: Adient's net margin lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of -0.3%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Adient's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of -0.55%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): Adient's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of -0.12%, the company may face hurdles in achieving optimal financial performance.

Debt Management: With a high debt-to-equity ratio of 1.32, Adient faces challenges in effectively managing its debt levels, indicating potential financial strain.

How Are Analyst Ratings Determined?

Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter.

Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.

This article was generated by Benzinga's automated content engine and reviewed by an editor.