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APTV PR A - Aptiv News Story

$162.4 -0.1  -0.1%

Consumer Cyclicals
Large Cap
Market Cap £28.42bn
Enterprise Value £29.39bn
Revenue £11.50bn
Position in Universe th / 7157

BUZZ-RBC sees more favorable setup for U.S. auto suppliers vs OEMs

Tue 13th July, 2021 10:43am
** RBC says OEMs (original equipment manufacturers) had
strong quarter and suppliers had tough Q2, but believes
conditions for suppliers looks more favorable
    ** Sees upside to 2022 estimates for suppliers, who face a
strong setup over next 12-18 mths now that the worst of
chip-shortage related shutdowns are behind them
    ** With limited H2 visibility, brokerage expects a
beat-and-raise for Ford  F.N  and General Motors  GM.N , and an
EPS beat for Tesla  TSLA.O  
    ** For suppliers, brokerage sees a beat-and-raise at Aptiv
 APTV.N  and mostly inline results at Meritor  MTOR.N 
    ** Expects chip shortage to likely trough in Q2 with a
modest recovery beginning Q3, and improved production
sequentially thereafter
    ** "We believe Q2 global production units likely came in 8%
lower, though unit production still expected +50% y-o-y" - RBC 
    ** Says GM remains its favorite OEM for rest of the year 
    ** RBC revises PT for the following companies    
 Company                    Current PT   Prior PT
 Adient PLC                 $58          $62
 Amphenol Corp              $73          $71
 Aptiv PLC                  $188         $187
 Autoliv Inc                $117         $124
 Borgwarner Inc             $49          $47
 Cerence Inc                $105         $100
 Dana Inc                   $32          $31
 General Motors Co          $77          $72
 Lear Corp                  $216         $226
 TE Connectivity Ltd        $160         $158
 Tenneco Inc                $17          $13
 Tesla Inc                  $718         $725
 TuSimple Holdings Inc      $68          $52
 Visteon Corp               $142         $149
 (Reporting By Geetha Panchaksharam)
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