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Delphi Technologies Stock Gains After New "Buy" Rating

Analysts have been split toward DLPH, but Goldman sees promise

Managing Editor
Jun 13, 2019 at 9:33 AM
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Auto parts manufacturer Delphi Technologies PLC (NYSE:DLPH) is off to a great start this morning, last seen up 0.2% at $17.83, after receiving a fresh bull note from Goldman Sachs. The brokerage firm handed out an upgrade to "buy" from "neutral," but issued a price-target cut to $24 -- still a 35% premium to Wednesday's close. An analyst at Goldman said despite the company's previous "challenges," it sees "idiosyncratic margin and FCF expansion as we progress into 2020."

Overall, analysts have been almost evenly split regarding DLPH, with seven "strong buy" and six "hold" ratings on the books coming into today. Meanwhile, the stock's consensus 12-month price target stands at $26, a 46% premium to current levels.

Elsewhere, the security's Schaeffer's Volatility Scorecard (SVS) reading comes in at an elevated 98 out of a possible 100, suggesting the equity has consistently made outsized moves over the past year, compared to what the options market priced in. This is typically a boon to premium buyers, though DLPH's options pits have been relatively quiet of late.

On the charts, Delphi stock has struggled long term. Over the past 12 months, the shares of the manufacturer have shed 66%, ushered lower by their 200-day moving average. The stock has, however, made headway from its December lows, last seen 34% above this record-low territory.
 

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