Versigent's (VGNT-W) engineering capabilities and design optimization secure the company's position among the top three players in automotive wire harnessing globally, RBC Capital Markets said in a Monday note.

Versigent's spinoff from Aptiv (APTV) is set to be finalized Wednesday and the company started trading on NYSE as "when-issued" on March 27.

RBC said Versigent commands about 13% of a total addressable market of $70 billion, though it remains "materially under-indexed" to Chinese original equipment manufacturers that corner about 65% of the local market.

The company is targeting to expand its cumulative EBITDA margin by about 200 basis points through 2028 by managing costs, automating manufacturing, and improving mix, among others, the brokerage said.

RBC initiated coverage of Versigent with a sector perform rating and $28 price target.