) to outperform from in-line.
Analyst Gary Lapidus says he expects Ford -- Visteon's biggest customer -- is considering major changes that could drive a significant profit improvement for Visteon. He says Ford is now planning to move Visteon from an "off balance sheet cost center" towards a more independent, viable, and profitable supplier.
Lapidus notes these changes include addressing product pricing and union labor costs, and cutting unprofitable business lines at Visteon. Along with his upgrade, he downgraded auto-parts makers Johnson Controls, Lear Corp., and Magna International to in-line from outperform on price. He also reinstated his outperform rating for Dana Corp., and his in-line rating for ArvinMeritor.