) to buy from neutral.
Analyst John Casesa said that despite speculation surrounding the company's possible bankruptcy, he believes it probable that companies such as Delphi, General Motors (GM
), and UAW will come to deal to avoid Chapter 11 because bankruptcy would be too costly to GM and UAW due to: its domino effect on other suppliers, GM's legacy liabilities, GM's UAW relationship, and Delphi rejecting money losing GM contracts. The analyst says that despite a recent decline in Delphi's stock price, he does not think there is any new, credible negative information in the market; if anything, key parties appear to have softened their positions recently. He set a $6.50 price objective.