Autoliv's (ALV) strong Q1 beat, driven by foreign exchange movement and performance in China and India, gives the confidence to raise 2026 estimates, RBC Capital Markets said in a note emailed Monday.

S&P Global lowered global production numbers and now forecasts a decline of 2% for light vehicle production, compared with Autoliv's unchanged forecast of a 1% decline which had previously embedded some caution, the brokerage said.

The company expects its China/India performance to drive better than market LVP performance, but will face difficult China comps later in the year, so a similar outperformance as Q1 should not be expected, the brokerage added.

Management also clarified that the section 232 revision on metals does not meaningfully impact Autoliv's tariff position, the note added.

RBC said Autoliv is the best quality auto supplier in its coverage, given its market position and product offering versus competitors.

The brokerage maintained an outperform rating on Autoliv and raised the price target to $138 from $137.

Price: 120.49, Change: +1.57, Percent Change: +1.32