Citi's analyst Michael Ward has initiated coverage on Cooper-Standard Holdings Inc. (CPS, Financial), assigning the stock a Neutral rating along with a price target of $12. The assessment comes amid broader scrutiny of the auto manufacturers and auto parts segment.
Ward highlights potential volatility in U.S. light vehicle sales due to ongoing tariff uncertainties, which could affect market stability until a resolution is reached. Despite these concerns, March sales exceeded expectations, and the momentum has carried into April. This positive trend hints at a resilient market, despite the overhanging global trade tensions.
Looking forward, Citi anticipates that once the issues related to tariffs are resolved, demographic factors will drive a consistent demand for vehicles in the U.S., estimated to be around 16 million to 18 million units annually. This figure is approximately 10% higher than the projections for 2024, suggesting a need for inventory replenishment that could bolster production rates—a benefit to the auto industry’s financial health.
Citi also emphasizes that dealerships are well-positioned to manage this period of uncertainty, potentially absorbing market fluctuations more effectively than other segments within the auto industry.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 1 analysts, the average target price for Cooper-Standard Holdings Inc (CPS, Financial) is $20.00 with a high estimate of $20.00 and a low estimate of $20.00. The average target implies an upside of 61.55% from the current price of $12.38. More detailed estimate data can be found on the Cooper-Standard Holdings Inc (CPS) Forecast page.
Based on the consensus recommendation from 1 brokerage firms, Cooper-Standard Holdings Inc's (CPS, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Cooper-Standard Holdings Inc (CPS, Financial) in one year is $14.24, suggesting a upside of 15.02% from the current price of $12.38. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Cooper-Standard Holdings Inc (CPS) Summary page.
