Autoliv received a price-target boost from RBC Capital Markets despite the automotive-safety products maker’s Friday report of weaker-than-expected Q2 results, as the firm applauded the investments the company is making that weighed on its earnings. The new price target from RBC is $100 per share, up from $98. However, this is still below the stock’s Friday closing price, even after the shares fell 7.9% in Friday’s session on the Q2 miss. The stock closed Friday at $106.78 and edged down 0.1% to $106.71 in recent Monday pre-market trading. RBC kept its investment rating on the stock at sector perform.
For its Q2, Autoliv reported adjusted earnings per share of $1.44, down from $1.75 a year earlier and slightly below analysts’ mean estimate according to Capital IQ of $1.45. Net sales slipped to $2.54 billion from $2.58 billion a year earlier, missing the Street’s consensus estimate of $2.57 billion. Research, development and engineering (RD&E) costs increased to $195.5 million from $176.4 million a year earlier.