Barclays on U.S. Autos & Auto Parts: Global Automotive Conference Summary
Tweet Send to a FriendGet Alerts BWA Hot Sheet
Rating Summary:
7 Buy, 10 Hold, 0 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 13 | Down: 25 | New: 24
Barclays on U.S. Autos & Auto Parts: Global Automotive Conference Summary
Barclays analyst Brian A. Johnson, said, "With an uncertain outlook, investors may prefer names with resilience. With an uncertain sales environment, we believe that investors should favor names that can grow top lines and expand margins even with stalled sales - as opposed to merely hoping that rising volume will improve margins (a tough call even in a rising sales environment as incremental margins have slipped in recent quarters). On the sales side, as is well known, BorgWarner (NYSE: BWA) and Tenneco (NYSE: TEN) offer strong growth based on regulatory content; less well known is the large backlog growth at American Axle (NYSE: AXL). On the margin side, given the continued pressure, parts makers need to be able to either have products with defensible margins (e.g., Borg) or specific re-pricing or re-engineering opportunities (e.g., Dana (NYSE: DAN))."
"With the market back to pricing in a 50% chance of a double-dip, we think auto stocks look cheap across the board -- making it tempting to chase beta: While we believe business results should favor the better positioned players such as BWA and AXL, with many names pricing in a significantly greater chance of a double dip, improved market macros could lead to short-term rebounds, making us reluctant to give up yet on our Overweights."
Other U.S. Auto stocks include: Ford (NYSE: F), GM (NYSE: GM), Johnson Controls (NYSE: JCI), Meritor (NYSE: MTOR), TRW (NYSE: TRW), Lear (NYSE: LEA), Fuel Systems (Nasdaq: FSYS), Titan Intl (NYSE: TWI) and Superior Industries (NYSE: SUP)
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
You May Also Be Interested In
- UPDATE: UBS Downgrades Carnival (CCL) to Neutral; Worst May Not Be Behind
- Topeka Capital Sees Attractive Entry in Ducommun (DCO); Starts at Buy
- UPDATE: Michael Kors (KORS) Under-Appreciated; Canaccord Genuity Starts at Buy
Create E-mail Alert Related Categories
Analyst CommentsRelated Entities
Barclays
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
