UBS on U.S. Autos & Auto Parts Americas: Post Multiple Correction, U.S. Will Be Key
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Price: $12.90 +0.16%
Rating Summary:
12 Buy, 21 Hold, 4 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 15 | Down: 10 | New: 13
Rating Summary:
12 Buy, 21 Hold, 4 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 15 | Down: 10 | New: 13
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UBS on U.S. Autos & Auto Parts Americas: Post Multiple Correction, U.S. Will Be Key
Analyst, Colin Langan, said, "Since our last US sales revision, key indicators such as the U of M index, used car prices, and unemployment have improved. We also estimate that ~300k units were lost in 2011 due to
inventory shortages. This implies a ~600k y/y improvement if underlying growth (excluding restocking) is flat. We are therefore raising our 2012 auto sales estimate from 13.3m to 13.6m. We’d be more bullish if the U of M index increases further; the index is trending up but remains below its decade average."
"Both US and European levered suppliers have rallied YTD; however we see potential upside to the US outlook and continued downside risk in Europe. Consequently, we remain bullish on the OEMs given their leverage to NA profits, and we are more cautious on su ppliers given their h.igher reliance on Europe. Valuation: Raising EPS estimates and px targets We are raising our EPS estimates for Ford (NYSE: F), GM (NYSE: GM), Lear (NYSE: LEA), AutoNation (NYSE: AN), & Sonic Automotive (NYSE: SAH) to reflect higher US sales. We are also raising our px targets for GM, DAN & SAH."
Analyst, Colin Langan, said, "Since our last US sales revision, key indicators such as the U of M index, used car prices, and unemployment have improved. We also estimate that ~300k units were lost in 2011 due to
inventory shortages. This implies a ~600k y/y improvement if underlying growth (excluding restocking) is flat. We are therefore raising our 2012 auto sales estimate from 13.3m to 13.6m. We’d be more bullish if the U of M index increases further; the index is trending up but remains below its decade average."
"Both US and European levered suppliers have rallied YTD; however we see potential upside to the US outlook and continued downside risk in Europe. Consequently, we remain bullish on the OEMs given their leverage to NA profits, and we are more cautious on su ppliers given their h.igher reliance on Europe. Valuation: Raising EPS estimates and px targets We are raising our EPS estimates for Ford (NYSE: F), GM (NYSE: GM), Lear (NYSE: LEA), AutoNation (NYSE: AN), & Sonic Automotive (NYSE: SAH) to reflect higher US sales. We are also raising our px targets for GM, DAN & SAH."
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