Electrical architecture + software dual drive, Baird shouts that Aptiv (APTV.US) stock price can still rise by 20%.

Senior analyst Luke Junk from the top investment firm Baird on Wall Street recently released a research report, maintaining an "outperform" rating on Aptiv PLC (APTV.US) while raising its target stock price from $84 to $97 within the next 12 months. He emphasized that Aptiv is one of the most attractive global electric vehicle supply chain stocks for investors to buy into. Based on the closing price of $80.22 on September 5 in the US stock market, Baird's latest target price implies a potential upside of about 20.91% in the next 12 months. The stock has performed well this year, with a 35% increase since the beginning of 2025, significantly outperforming the S&P 500 index. Analyst Junk from Baird stated that he adjusted the target prices for some vehicle technology and mobility-focused stocks to reflect a positive stance on some cyclical stock targets. He is increasingly bullish on this group, citing the automotive industry trends not being as bad as expected, significant signs of fundamental improvement, sector rotation potential, and a valuation level for the stock that is not overly harsh. Aptiv provides electrification architecture and high-performance software systems for efficient operation of electric vehicles. With a forward P/E ratio of only 17.14x, analyst Junk believes that trading near this valuation is completely reasonable given the strong performance of the core businesses. Especially considering that Wall Street analysts generally expect the company's revenue to achieve a strong compound annual growth rate of 8.87% over the next 5 years, this valuation is at a very reasonable level. At a recent J.P. Morgan Global Automotive Industrials Conference, Aptiv stated that it is focused on reducing dependence on specific large markets. Additionally, the company is also working on improving real-time visualization capabilities and overall control capabilities. Aptiv is responsible for providing the "nervous system + brain" of vehicles for the automotive supply chain, encompassing high-voltage interconnects, data connectivity and power distribution, perception, automated driving computing platforms, and large vehicle cloud software platforms (including Wind River acquired in recent years). Therefore, Aptiv PLC is positioned as a Tier-1 supplier in the global automotive technology and "vehicle architecture" sector, primarily providing electrical/electronic architecture (wiring harnesses, connectors, high and low-voltage distribution, high-speed data and high-voltage interconnects) and active safety/cabin and software (ADAS, central computing, vehicle cloud computing software) for large OEMs. Aptiv explicitly stated in its performance reports that its customers include the top 25 global OEMs. In North America, the company's customers include the "Detroit Big Three" automakers General Motors Company, Ford Motor Company, and Stellantis, with whom they have long-term cooperation agreements; in Europe, the European automotive giants Volkswagen Group has awarded them a group-level supplier award, and BMW is listed as one of their "key customers"; in Asia, Aptiv, together with Hyundai Motor Group, formed the autonomous driving joint venture Motional and received the Best Supplier award from Toyota Motor Corp. Sponsored ADR.