Autoliv, Inc. (NYSE:ALV) shares were trading more than 3% lower Tuesday afternoon following the company’s reported Q1 results, with EPS of $0.45 coming in significantly below the Street estimate of $1.18. Revenue was $2.12 billion, compared to the Street estimate of $2.23 billion.

Analysts at Deutsche Bank provided their views on the company, stating that the quarterly disappointing results reflect a challenging near-term operating environment for the entire auto suppliers group.

The analysts mentioned that the company’s revenue growth in 2022 is still expected to outperform the overall market by 12%, supported by a strong business backlog, growing CPV, and continued market share gains.

However, the analysts are modeling operating margin compressing toward the high-end of the revised guidance to around 6.5% due to ongoing inflationary pressure from commodities and other inputs including premium freight.

The analysts still view Autoliv as one of the best plays for the industry recovery, despite macro challenges. The analysts expect $4.40 of EPS in 2022, $7.10 in 2023, and $9.00 in 2024.