NEW YORK (TheStreet) -- Shares of Autoliv Inc. (ALV) are down by 1.71% to $121.57 at the start of trading on Tuesday morning. The stock was downgraded to "sector weight" from "overweight" at Keybanc today.
The firm said it lowered its rating on the developer, manufacturer, and supplier of automotive safety systems based on a valuation call.
"Material EPS upside in 2015 and 2016 from: a) the Takata recall; and b) capital deployment, beyond what the stock price already reflects appears unlikely," the firm said in an analyst note.
"The 2017 EPS outlook is somewhat uncertain with the Takata recall ending and lack of visibility on sustainable airbag share gains; and valuation is well above historical levels and appears to have peaked recently," Keybanc added.
Separately, TheStreet Ratings team rates AUTOLIV INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate AUTOLIV INC (ALV) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and solid stock price performance. We feel its strengths outweigh the fact that the company has had sub par growth in net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows: