Strong margins, revenue growth and insulation from automotive market headwinds have UBS labeling Sweden’s Autoliv as a “growth safe haven story.” Autoliv is isolated from short-term industry concerns, such as electric vehicle penetration, “intense capital allocation or China underexposure,” UBS analyst Juan Perez-Carrascosa wrote on Tuesday. UBS upgraded Autoliv, a maker of seatbelts, airbags and steering wheels, to buy from neutral and raised its price target by 38% to $141 from $102, which was far below Friday’s close at $125.73. The new target implies further upside of 12% for Autoliv, which is up 17% in 2024 after soaring 44% in 2023. ALV YTD mountain Autoliv stock has climbed more than 14% in 2024. “All in all, we think ALV has a solid equity story on a [short-term/medium-term/long-term] time horizon, both in absolute and relative terms, and despite trading at a justified premium to the pack it still stands below its own historical multiples (12m fwd PE at c11x vs historical c13x), which is tough to explain on record high margins,” Perez-Carrascosa said. The analyst also noted that the company is poised to outperform peers and navigate broader headwinds tied to the automotive industry, including slow production and stalling electric vehicle penetration, thanks to “healthy” free cash flow and a robust balance sheet. ALV rose 2% in early trading Tuesday.