Autoliv, Inc. (ALV)

Difficult conditions in North American and West European automotive markets are the primary concerns for Autoliv Inc. (ALV - Analyst Report). The company reported net losses in the first quarter of 2009.

In the second quarter of 2009, Autoliv expects consolidated sales to decline in the range of 40%-45%, with organic sales declining more than 30%. Operating margin for the second quarter of 2009 is expected to be negative by less than 3%, excluding restructuring costs and major customer defaults.

Moreover, pricing pressure from OEMs has stalled margin expansion. Hence, we rate the stock a Sell with a target price of $16.50.