Ahead of the Bell: Analyst raises Autoliv to 'Buy'

KeyBanc Capital Markets analyst Brett Hoselton also assigned a share price target of $32 to Autoliv. That implies he expects the stock to gain 67 percent over its Tuesday closing price of $19.13.

Hoselton said the dividend for the Sweden-based maker of automotive safety systems should remain intact "given management's strong commitment to distributing excess cash flow to shareholders."

In addition, the company is well positioned to navigate the difficult economy, helped by its diverse revenue stream, limited exposure to the North American light truck market and manageable commodities costs.

Auto parts suppliers have been hard hit recently amid the downturn in auto sales and production cuts from automakers. Shares of Autoliv have declined 64 percent since the start of the year.