Aptiv is viewed positively by Oppenheimer ahead of earnings

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Oppenheimer stayed positive on Outperform-rated Aptiv (NYSE:APTV), but reduced its price target to $172 from $192 on lowered expectations for 2022 LDV sales.

The firm said it sees signs that supply chain constraints could potentially ease in the second half of the year with semiconductors and other parts, but notes the potential for further disruption across the supply chain due to the Russia/Ukraine conflict and ongoing COVID complications.

Working in Aptiv's (APTV) favor, channel checks from Evercore suggest that price increases to consumers have not hurt demand and that much of the price friction in the supply chain is being passed on to support margins.

"We expect investors to be looking beyond choppiness in 1H22 and visibility to when production schedules and supply chain constraints may normalize especially if APTV continues to deliver strong bookings."

Aptiv (APTV) is expected to post its Q2 earnings report sometime during the first week of August.