Analysts at Berenberg Bank commented on Aptiv PLC (NYSE:APTV) lowered 2021 guidance, decreasing their price target on the company’s shares to $182 from $187, while reiterating their buy rating.

The company lowered 2021 revenue guidance from $16.1 billion-16.4 billion to $15.1 billion-15.5 billion and adjusted operating margins from 9.9-10.2% to 7.6-8.4% on lower vehicle production.

While the negative operating leverage on lower revenues is worse than the analysts anticipated, they believe the market has largely expected downward guidance revisions. In their view, the revision de-risks the upcoming earnings release and they would be buying on any share price weakness now that estimates have once again been re-based.