Aptiv: Safety, Software, And Electrification Drivers Are Finally Compounding

Aptiv is transitioning from a cyclical auto supplier to a structural content-growth story, driven by regulatory-led ADAS adoption and electrification content per vehicle. Despite mixed Q2 headlines, underlying growth in Active Safety, Engineered Components, and Electrical Distribution signals a positive long-term mix shift and margin expansion. Aptiv trades at below-average multiples with above-average growth prospects, offering 30-40% upside as the business becomes more tech-centric and less production-dependent.