Adient (ADNT), mcap=$2.85bn, price $30.02 vs $32.19

– A play on a post-covid recovery in the automotive industry.
– The largest supplier globally of automotive seating.
– A mediocre business – capital-inefficient widget-maker forced to absorb pricing pressures – but one with overly punitive present valuation.
– Company expected to re-rate upon return of volumes to pre-covid levels as well as successful streamlining and restructuring efforts driving core earnings to mid-cycle (or better) levels.

Valuation: Trades at 8.5x EV/LTM EBITDA, and sub-3x FY26E EBITDA.

Exp. gain: Not specified.

Full ADNT write-up (free guest account required):

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