Phinia initiated with an Outperform at Northland on positive auto market dynamic

As previously reported, Northland initiated coverage of Phinia (PHIN) with an Outperform rating and $61 price target. Phinia, a “global leader in fuel and electrical systems for light/commercial vehicles” in both OEM production and aftermarket, was spun off from its former partner company, BorgerWarner (BWA), in 2023, notes the analyst, who thinks the spin was “initially viewed by some as a dump of unwanted assets,” but also believes “this misconception is now in the rearview.” As electric vehicle adoption has fallen below expectations and ICE and hybrid vehicles appear to have “far more staying power,” the firm thinks this will be a major benefit for Phinia and thinks investors “still have yet to realize the growth opportunities and robust shareholder returns” in its future.