Barclays on U.S. Autos & Auto Parts: Used Car Pricing Remains Flat

Barclays on U.S. Autos & Auto Parts: Used car pricing remains flat

Analyst, Brian A. Johnson, said, "The Manheim Index (based on used car auto auction data) in November was slightly down y/y but modestly up sequentially. The November Manheim index came in at 123.8, which is 0.4% lower than a year ago but up 0.8% sequentially (but still down 3.1% versus the peak in May). The November results reinforce our expectations for used vehicle pricing to stabilize at strong levels as two years of weak new vehicle sales (and in particular curtailed leasing) is likely to limit supply of late-model vehicles."

"Smaller vehicles still stronger. Despite gas prices moderating and Japanese supply returning, segment pricing continues to favor small cars over larger trucks. In particular, full-size pickup pricing fell 1.5% y/y for the light-duty segment and 4.7% y/y for the heavy-duty segment, while full-size SUVs were down 6.7% versus the previous year."

"Car rental companies continued to enjoy strong off-rental pricing in November. Car rental companies continued to enjoy very strong off-rental pricing in November. In particular, pricing for risk cars was up not only from year ago levels (by $1,655 per vehicle), but also up modestly from October levels (by $46)."

Stocks of Note Include: GM (NYSE: GM), Ford (NYSE: F), AutoZone (NYSE: AZO), O'Reilly's (Nasdaq: ORLY), PepBoys (NYSE: PBY), Penske Automotive Group (NYSE: PAG), Spartan Motors Inc. (Nasdaq: SPAR), PACCAR Inc. (Nasdaq: PCAR), American Axle (NYSE: AXL), Meritor (Nasdaq: MTOR), Johnson Controls (NYSE: JCI), Toyota (NYSE: TM), Honda (NYSE: HMA) and Lear (NYSE: LEA)

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• AGNC Investment Corp (AGNC) PT Lowered to $10.25 at Jones Trading
• Fiserv (FI) PT Raised to $200 at Evercore ISI
• Quest Diagnostics (DGX) PT Raised to $145 at Evercore ISI