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Piper Jaffray Rated Delphi Automotive as ‘Overweight’


Jun. 14 2016, Updated 9:07 a.m. ET

Price movement of Delphi Automotive

Delphi Automotive (DLPH) has a market cap of $18.4 billion. It fell by 2.3% to close at $67.33 per share on June 10, 2016.

The stock’s weekly, monthly, and year-to-date (or YTD) price movements were 0.39%, -4.2%, and -20.8%, respectively, on the same day. This means that DLPH is trading 0.64% below its 20-day moving average, 5.3% below its 50-day moving average, and 9.3% below its 200-day moving average.

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Related ETF and peers

The First Trust Large Cap Value AlphaDex ETF (FTA) invests 0.18% of its holdings in Delphi Automotive. This ETF tracks an index that selects and weights value stocks from the S&P 500 Value Index using fundamental factors including sales, book value, and cash flows. The YTD price movement of FTA was 5.4% on June 10, 2016.

The market caps of Delphi Automotive’s competitors are as follows:

  • Autoliv (ALV) – $10.7 billion
  • Lear (LEA) – $8.5 billion
  • Visteon (VC) – $2.5 billion

Delphi Automotive’s ratings

Piper Jaffray has initiated the coverage of Delphi Automotive with an “overweight” rating and set the company’s price target at $82.00 per share.

On June 6, 2016, Goldman Sachs downgraded Delphi Automotive rating from “conviction buy” to “buy.”

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Performance of Delphi Automotive in 1Q16

Delphi Automotive reported fiscal 1Q16 net sales of $4.1 billion, a rise of 6.7% compared to net sales of $3.8 billion in fiscal 1Q15. Sales from its Electrical-Electronic Architecture, Powertrain Systems, and Electronics and Safety segments rose by 9.6%, 1.2%, and 5.6%, respectively, in fiscal 1Q16 compared to fiscal 1Q15. It reported restructuring expenses of $35.0 million in fiscal 1Q16 compared to $16.0 million in fiscal 1Q15.

Its net income and EPS (earnings per share) rose to $425.0 million and $1.53, respectively, in fiscal 1Q16. This compares to $209.0 million and $0.72, respectively, in fiscal 1Q15.

Delphi’s cash and cash equivalents fell by 13.5%. Its inventories rose by 9.0% in fiscal 1Q16 compared to fiscal 4Q15. Its current ratio fell to ~1.3x and its debt-to-equity ratio rose to 3.6x in fiscal 1Q16. This compares to a current ratio and debt-to-equity ratio of 1.3x and 3.4x, respectively, in fiscal 4Q15.


Delphi Automotive (DLPH) has made the following projections for fiscal 2Q16:

  • revenue: $4.1 billion–$4.2 billion
  • adjusted operating income: $555 million–$585 million
  • adjusted EPS: $1.50–$1.60
  • adjusted effective tax rate: 17%

The company has made the following projections for fiscal 2016:

  • revenue: $16.6 billion–$17.0 billion
  • adjusted operating income: $2.2 billion–$2.3 billion
  • adjusted EPS: $5.80–$6.10
  • cash flow from operations: $2.0 billion
  • capital expenditures: $800 million
  • adjusted effective tax rate: 17%

In the next part of this series, we’ll take a look at Coach.


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