VC

Visteon Corp

Industrial/Transportation


Presented:04/04/2019
Price:$76.12
Cap:$2.15B
Current Price:$89.78
Cap:$2.48B

Presented

Date04/04/2019
Price$76.12
Market Cap$2.15B
Ent Value$1.80B
P/E Ratio14.23x
Book Value$16.61
Div Yield0%
Shares O/S28.24M
Ave Daily Vol580,908
Short Int1.76%

Current

Price$89.78
Market Cap$2.48B
Visteon Corp. engages in the design, engineering, and manufacture of electronics products, automotive vehicles and supplies automotive parts. The firm's products include Instrument Clusters, Information Displays, Audio and Infotainment Systems, Telematics Solutions, Head-Up Displays, SmartCore Domain Controller and DriveCore Autonomous Driving Controller. The company was founded on January 5, 2000 and is headquartered in Van Buren Township, MI.

Publicly traded companies mentioned herein: Aptiv PLC (APTV), Ford Motor Co (F), Visteon Corp (VC)

Highlights

The presenter is long shares of Visteon Corp (VC), the tier one display and infotainment auto supplier. The Ford spin-off initially came out with a variety of business lines; however, when CEO Sachin Lawande arrived in 2015, VC sold off almost its entire portfolio, focusing solely on going digital in the infotainment and display categories. The company made R&D investments with the strategy of driving manufacturing efficiencies by standardizing 80% of each product with the remaining 20% customizable by the customer. This transition phase has been long-winded, but the presenter thinks it is near the end and based on where we are in the cycle, expects the trough to be reached in the first half of 2019. After that, he expects VC to begin realizing the payoff. With shares currently trading at ~$75, he sees a “fairly easy path” to $100 – $110 in the next 12 months and longer-term upside to ~$200 as cyclical trends ease and the company creates value by growing over the market.

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Idea Discussion

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