RBC Capital analysts lowered their price target on Aptiv PLC (NYSE:APTV) to $115 from $120, noting that it is their favorite supplier for 2023 and expectations seem more reasonable now.

The analysts expect 2022 revenue at approximately $17.35 billion. In thinking about the drivers for 2023, the analysts think management believes flat LVP is a good starting point. The company is sticking with its 8-10% growth over the market.

According to the analysts, helping the topline are two acquisitions: (1) IAS which was expected to have $265 million in 2022 sales. The deal closed on 12/1/22 so most of this is additive in 2023; (2) Wind River announced 1/11/22 but curiously hasn’t closed. Wind River had $400 million in 2021 revenue, so the analysts assume a similar level for 2023. Thus, including acquisitions, the analysts see 2023 revenue of approximately $19.4 billion as possible.