Adient fundamentals vs volatility

All,

Please find our updated analysis of Adient here.

In light of the dramatic slowdown in vehicle production volumes in both China and Europe, we are still hesitant about making an investment.

Our model does include the effects of the current trends and the increase in leverage over the coming year should be limited - and is fundamentally largely priced in. However, we are not certain the market will be prepared to look as deeply when more negative automotive earnings are published in the coming months.

Thus we are looking to enter the name at a better level and avoid the volatility that automotive suppliers can so often display when the market tightens at the same time as sector fundamentals deteriorate.

Wolfgang