Adient Plc's Bargain Price Doesn't Make It Worth The Risk

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About: Adient plc (ADNT), Includes: JCI, LEA
by: Centaur Investments
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Centaur Investments
Long/short equity, special situations, event-driven, value
Summary

Centaur Investments offers a “Sell/Short” opinion on shares of Adient Plc with a $19 PT.

After $1.5 billion in value-eroding impairment charges, Adient’s future remains ambiguous.

With global auto sales slowing and production volumes in decline, the Adient-Yanfeng JV value deterioration may only be starting.

Adient has amended their debt covenant to allow for a higher leverage ratio, introducing additional risks in addition to FX exposure and challenges at Adient’s Chinese JV.

Lastly, Centaur's close inspection of insider selling activity ahead of negative news announcements, may be of concern to some investors.

Overview

Centaur Investments is pleased to offer a “Sell/Short” opinion on shares of Adient Plc (ADNT). This represents a downgrade from the “Hold/Hedge” opinion shared with readers on July 29th. In this latest