Analysts covering Autoliv have raised full-year earnings estimates by an average of 4.8% over the past month, reflecting stronger-than-expected order intake for advanced driver-assist systems. Consensus revenue projections for fiscal 2025 have climbed to $9.6 billion, up from $9.2 billion three months ago, driven by a 12% increase in global airbag module shipments. At current valuation levels, the company trades at roughly 10 times forward earnings, below the five-year average of 12.5 times, suggesting that the market may be overlooking the recent expansion of operating margins to 11.2% from 9.7% last year.

Zacks recently upgraded Autoliv to a Rank #2 (Buy), citing sustained upward revisions to consensus estimates and positive momentum in the vehicle safety market. The upgrade follows a 6% upward revision to the second-quarter EPS forecast over the past two weeks. Management has guided for 8% annual revenue growth through 2027, supported by rapid adoption of radar-based safety products, which currently account for 18% of sales and are expected to exceed 25% by 2026. Investors could benefit from the combination of accelerating earnings growth and a rebound in free cash flow, projected to exceed $700 million next year.