UBS on U.S. Autos and Auto Parts: Raising Numbers As Underlying Auto Sales Are Still Strong
Get Alerts GM Hot Sheet
Price: $42.46 --0%
Rating Summary:
25 Buy, 13 Hold, 1 Sell
Rating Trend: Down
Today's Overall Ratings:
Up: 12 | Down: 13 | New: 14
Rating Summary:
25 Buy, 13 Hold, 1 Sell
Rating Trend: Down
Today's Overall Ratings:
Up: 12 | Down: 13 | New: 14
Join SI Premium – FREE
UBS on U.S. Autos and Auto Parts: Underlying Auto Sales Are Still Strong
Analyst, Colin Langan, said, "Based on our analysis of underlying demand, we are raising our 2012 US sales estimate from 13.6m to 14.5m. Our revised estimate is slightly above consensus of 14.3m. Improving leading indicators, particularly the recent improvement in U of M new car buying conditions, supports our more bullish outlook. That said, the US sales upside is likely capped at ~15m due to NT supplier capacity constraints."
"We also updated our market share estimates for GM (NYSE: GM) and Ford (NYSE: F) to reflect their YTD underperformance. We expect GM’s share will decline 180bps y/y though improve by ~20bp from their YTD level. We forecast Ford’s share will decline 60bps y/y, but improve ~100bps from their YTD level due to launches (Escape & Fusion). We are raising our EPS estimates by 2%-7% to reflect higher US sales."
"We are raising our price targets for F, GM, and Dana (NYSE: DAN) by ~7%, and our Lear Corp (NYSE: LEA) and AutoNation (NYSE: AN) price targets by ~3%. We are also lowering our px targets for BorgWarner (NYSE: BWA) and Sonic Automotive (NYSE: SAH) to reflect lower valuation multiples."
Analyst, Colin Langan, said, "Based on our analysis of underlying demand, we are raising our 2012 US sales estimate from 13.6m to 14.5m. Our revised estimate is slightly above consensus of 14.3m. Improving leading indicators, particularly the recent improvement in U of M new car buying conditions, supports our more bullish outlook. That said, the US sales upside is likely capped at ~15m due to NT supplier capacity constraints."
"We also updated our market share estimates for GM (NYSE: GM) and Ford (NYSE: F) to reflect their YTD underperformance. We expect GM’s share will decline 180bps y/y though improve by ~20bp from their YTD level. We forecast Ford’s share will decline 60bps y/y, but improve ~100bps from their YTD level due to launches (Escape & Fusion). We are raising our EPS estimates by 2%-7% to reflect higher US sales."
"We are raising our price targets for F, GM, and Dana (NYSE: DAN) by ~7%, and our Lear Corp (NYSE: LEA) and AutoNation (NYSE: AN) price targets by ~3%. We are also lowering our px targets for BorgWarner (NYSE: BWA) and Sonic Automotive (NYSE: SAH) to reflect lower valuation multiples."
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- BMO Capital Upgrades SL Green Realty (SLG) to Outperform, 'NYC Is Back (Even Office)'
- TPG Inc. (TPG) PT Lowered to $43 at JPMorgan
- CSX (CSX) PT Lowered to $38 at Jefferies
Create E-mail Alert Related Categories
Analyst Comments, Analyst PT Change, Retail SalesRelated Entities
UBSSign 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!