Global Hunter Securities Upgrades China Automotive Systems (CAAS) to Buy; Expects Strong Q3 Results

November 5, 2009 7:24 AM EST

Global Hunter Securities upgrades China Automotive Systems, Inc. (Nasdaq: CAAS) from Neutral to Buy.

Global analyst says, "We expect strong Q3 results, ahead of current First Call consensus estimates. We believe the company has continued to benefit from strong auto sales in China as a result of government stimulus and strong consumer demand. CAAS’s main customers, Chinese domestic OEMs, have experienced significant growth so far this year. We believe the company has also strengthened its overall competitive position. Other than continued domestic demand, we expect its new EPS products and export sales, starting from zero, to be important growth drivers in the next three years. We raised our ’09 and ’10 estimates and introduced ’11 estimates. We project 40% top line growth in ’09 and 17% YoY growth in each of ’10 and ‘11. We believe the company’s enhanced competitive position and growth profile justify a higher multiple."

To see more analyst ratings on CAAS Click Here.

(China Automotive Systems is scheduled to report Q3 earnings on November 12)

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