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Barclays analyst Brian Johnson raised the firm's price target on Adient to $45 from $37 and keeps an Overweight rating on the shares. The analyst expects electric vehicle "enthusiasm" to continue into at least the first half of 2021 as the new Biden administration likely pursues a more aggressive CO2 regulatory approach. As such, Johnson is rotating his stock picks more toward electric vehicle accretive and powertrain neutral names. Tesla (TSLA) is pulling up valuations of pure-play electric vehicle names, leaving "powertrain agnostic names "relatively unscathed" while depressing the multiple of internal combustion engine dependent suppliers and manufacturers, says Johnson.

KeyBanc analyst James Picariello raised the firm's price target on Adient (ADNT) to $43 from $36 and keeps an Overweight rating on the shares. Adient's over-indexed China exposure and internal improvement levers drive nearly 200-plus bps of margin expansion in fiscal year 2021. Additionally, Picariello is encouraged by the company's $150M-plus in net new business as European conquest wins more than offset Tesla's (TSLA) N.A. insourcing.

Deutsche Bank analyst Emmanuel Rosner raised the firm's price target on Adient to $37 from $27 and keeps a Buy rating on the shares. The "mixed" market reaction to Adient's above-consensus fiscal 2021 guidance was likely a result of its conservative outlook only meeting elevated ingoing investor expectations, and the stock having already run up materially in the past month, Rosner tells investors in a research note. The analyst sees "meaningful additional upside potential" from current share levels.

Credit Suisse analyst Dan Levy raised the firm's price target on Adient to $36 from $29 and keeps an Outperform rating on the shares. While the bar was elevated into Adient's Q4 result, the analyst believes Adient cleared the bar on guidance, which is "arguably conservative." Free cash flow recovery remains on track, and Adient is paving a path to continued deleveraging, he contends. More importantly, Levy notes that the company demonstrated that its self-help initiative continues to push forward - not only can Adient fully recover past headwinds, but it can also achieve incremental efficiencies, reinforcing the opportunity for it to reach peer margin levels, and to return to near peak earnings levels despite the weaker end markets today versus 2017.

KeyBanc analyst James Picariello raised the firm's price target on Adient to $36 from $31 and keeps an Overweight rating on the shares. The analyst believes Adient's fiscal year 2021 guide underscores notable earnings growth runway driven by recovering industry volumes, clear internal improvement momentum, and over-indexed China exposure, where he sees conservatism in the company's China JV outlook amid favorable regional builds. As Adient continues to close the margin gap versus peers, Picariello considers both earnings upside potential and multiple expansion to be key outperformance catalysts.

RBC Capital analyst Joseph Spak raised the firm's price target on Adient to $38 from $24 and keeps an Outperform rating on the shares. The analyst notes that the company's Q4 results were "in line" with its pre-announcement and its initial FY21 guidance was above consensus as its "turnaround continues". Spak adds that Adient has over $1B in excess cash, and he sees potential for about $500M in FY22 free cash flow given the continued operating improvements and restructuring benefits.