APTV Stock Forecast & Price Target

Aptiv PLC is projected to experience significant EBITDA and revenue growth, leading to margin expansion from 18.7% in FY24 to approximately 22.4-22.6% by FY28, translating to an annual increase of 90-100 basis points depending on specific growth rates. The company's strong focus on software and its Other Industrials segment—encompassing Aerospace, Defense, and Telecom—supports a positive growth outlook, with anticipated revenues from Software & Services expected to grow at a mid-teens CAGR for Intelligent Systems through 2028. Additionally, the Industrial markets are projected to grow organically by 10% in FY25, highlighting Aptiv's position to capture value and drive sustainable long-term shareholder returns in high-margin sectors.

Aptiv PLC has presented a negative outlook primarily due to macroeconomic risks that threaten consumer credit availability and overall spending, which could lead to diminished demand for its products. Additionally, several risk factors, including slower global vehicle production growth, commodity price fluctuations, and potential increases in labor costs, could significantly affect the company's profitability and cash flow. Lastly, the projected EBITDA growth for fiscal year 2024 remains contingent on maintaining strong execution, which faces uncertainties such as competition, customer retention, and geopolitical dynamics.