Barclays on U.S. Autos and Auto Parts: Macro Weakness Leads To Lowered Estimates
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Rating Summary:
20 Buy, 4 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 12 | Down: 19 | New: 22
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Barclays on U.S. Autos and Auto Parts: Macro Weakness Leads To Lowered Estimates
Analyst, Brian A. Johnson, said, "While concerns within the auto sector over various macro factors are nothing new, the past eight weeks have seen macro headlines noticeably deteriorate. Indeed, concerns have heightened over challenges to European light vehicle production, weaker currency exchange rates for the EUR and BRL, and NA and SA CV builds. Given the significant headwinds, we reduce our estimates, so that they are "macro-proofed". Despite these reduced estimates, attractive upside continues to exist throughout the sector, with our top picks remaining General Motors (NYSE: GM), Ford (NYSE: F),Dana (NYSE: DAN), Tenneco (NYSE: TEN), BorgWarner (NYSE: BWA), and Delphi (Nasdaq: DLPH)."
For Overweight-rated BorgWarner (NYSE: BWA), Barclays cuts price target from $104 to $95, FY12 EPS estimate from $5.72 to $5.41 and FY13 from $7.01 to $6.54.
For OW-rated Dana (NYSE: DAN), price target lowered from $22 to $20, FY12 EPS estimate from $1.96 to $1.89 and FY13 from $2.48 to $2.22.
For OW-rated Delphi (Nasdaq: DLPH), PT cut from $39 to $37, FY12 EPS estimates from $4.00 to $3.74 and FY13 from $4.17 to $3.81.
For OW-rated GM (NYSE: GM), PT lowered from $37 to $35, FY12 EPS estimate cut from $3.83 to $3.51 and FY13 cut from $4.97 to $4.42.
For Equalweight-rated Johnson Controls (NYSE: JCI), PT is raised from $35 to $37, but FY12 EPS estimate is lowered from $2.71 to $2.66 and FY13 from $3.29 to $3.15.
For EW-rated Lear (NYSE: LEA), PT lowered from $54 to $52, FY12 EPS estimate cut from $5.20 to $5.10 and FY13 lowered from $5.40 to $5.28.
For EW-rated Meritor (Nasdaq: MTOR), PT lowered $1 to $7, FY12 EPS estimate raised from $1.06 to $1.07, but FY13 chopped from $1.99 to $1.63.
For OW-rated Tenneco (NYSE: TEN), PT lowered from $48 to $45, FY12 EPS estimate cut from $3.26 to $3.14 and FY13 from $4.16 to $3.93.
For EW-rated Visteon (NYSE: VC), PT lowered from $57 to $54, FY12 EPS estimate cut from $3.10 to $3.00 and FY13 from $3.87 to $3.12.
For EW-rated American Axle (NYSE: AXL), PT remains $66, but FY12/13 EPS estimates get cut by $0.02 each to $1.98 and $2.52, respectively.
For OW-rated Ford Motor (NYSE: F), PT remains $15, but FY12 EPS Estimate lowered from $1.55 to $1.50 and FY13 from $1.92 to $1.79
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Analyst, Brian A. Johnson, said, "While concerns within the auto sector over various macro factors are nothing new, the past eight weeks have seen macro headlines noticeably deteriorate. Indeed, concerns have heightened over challenges to European light vehicle production, weaker currency exchange rates for the EUR and BRL, and NA and SA CV builds. Given the significant headwinds, we reduce our estimates, so that they are "macro-proofed". Despite these reduced estimates, attractive upside continues to exist throughout the sector, with our top picks remaining General Motors (NYSE: GM), Ford (NYSE: F),Dana (NYSE: DAN), Tenneco (NYSE: TEN), BorgWarner (NYSE: BWA), and Delphi (Nasdaq: DLPH)."
For Overweight-rated BorgWarner (NYSE: BWA), Barclays cuts price target from $104 to $95, FY12 EPS estimate from $5.72 to $5.41 and FY13 from $7.01 to $6.54.
For OW-rated Dana (NYSE: DAN), price target lowered from $22 to $20, FY12 EPS estimate from $1.96 to $1.89 and FY13 from $2.48 to $2.22.
For OW-rated Delphi (Nasdaq: DLPH), PT cut from $39 to $37, FY12 EPS estimates from $4.00 to $3.74 and FY13 from $4.17 to $3.81.
For OW-rated GM (NYSE: GM), PT lowered from $37 to $35, FY12 EPS estimate cut from $3.83 to $3.51 and FY13 cut from $4.97 to $4.42.
For Equalweight-rated Johnson Controls (NYSE: JCI), PT is raised from $35 to $37, but FY12 EPS estimate is lowered from $2.71 to $2.66 and FY13 from $3.29 to $3.15.
For EW-rated Lear (NYSE: LEA), PT lowered from $54 to $52, FY12 EPS estimate cut from $5.20 to $5.10 and FY13 lowered from $5.40 to $5.28.
For EW-rated Meritor (Nasdaq: MTOR), PT lowered $1 to $7, FY12 EPS estimate raised from $1.06 to $1.07, but FY13 chopped from $1.99 to $1.63.
For OW-rated Tenneco (NYSE: TEN), PT lowered from $48 to $45, FY12 EPS estimate cut from $3.26 to $3.14 and FY13 from $4.16 to $3.93.
For EW-rated Visteon (NYSE: VC), PT lowered from $57 to $54, FY12 EPS estimate cut from $3.10 to $3.00 and FY13 from $3.87 to $3.12.
For EW-rated American Axle (NYSE: AXL), PT remains $66, but FY12/13 EPS estimates get cut by $0.02 each to $1.98 and $2.52, respectively.
For OW-rated Ford Motor (NYSE: F), PT remains $15, but FY12 EPS Estimate lowered from $1.55 to $1.50 and FY13 from $1.92 to $1.79
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