Freedom initiates on VW, Ford seat maker Adient with 'buy' and TP implying 35% upside

Freedom Broker recommends investors buy shares of small-cap seating manufacturer Adient, which supplies Volkswagen Group, Ford Motor, and Stellantis. Analysts expect the company to increase revenue and profitability through expansion in Asia and to win new orders in the U.S.

Freedom Broker initiated coverage of Adient with a "buy" rating, according to a note seen by Oninvest. Analysts set a target price of $33 per share, 35.2% above the current market level.

Adient stock rose 1.2% at the open today, October 2. Since the beginning of 2025, the shares have gained nearly 42%.

Freedom Broker expects Adient’s revenue growth to accelerate after 2026 on the back of two drivers. First, the company plans to expand its presence in China, where new car sales are growing rapidly. Second, orders in the U.S. could increase as automakers shift production to the country amid Trump administration tariffs. In August, Adient reported third-quarter revenue growth of 1% year over year to $3.7 billion.

Analysts also highlighted potential improvement in operating margins. Two factors support this view: Adient’s multiyear restructuring of its European business, where margins are traditionally low, and growth in Asia, where margins are much higher.

The company’s shareholder distribution policy is another factor that could support the stock. Adient has spent about $75 million on buybacks since the beginning of the year, it says.

Freedom Broker cautions that risks remain. A decline in U.S. car production would weigh on Adient’s results. The company is also dependent on large customers, with Volkswagen Group, Ford Motor, and Stellantis — the owner of Alfa Romeo, Chrysler, and Maserati — each contributing around 10% of revenue.

Wall Street is more cautious. According to MarketWatch, of the 16 analysts who track Adient shares eight rate them a “hold,” five a “buy,” and three a “sell.” The average target price is $24.95 per share, for just 2% upside.

The AI translation of this story was reviewed by a human editor.