Morgan Stanley cuts auto suppliers PT on EV slowdown

Adient

10/05/2024 15:15

** Morgan Stanley cuts PT on auto parts suppliers Adient
 ADNT.N , Magna International  MG.TO  and Visteon Corp  VC.O 
    ** Brokerage says suppliers continue to adjust to slowing EV
production
    ** Magna and ADNT cut FY24 revenue forecasts citing weaker
EV demand, while suppliers that are ICE (internal combustion
engine)-skewed such as Borgwarner  BWA.N  and American Axle
Manufacturing  AXL.N  reiterated FY guidance 
    ** Says China remains a headwind as domestic OEMs (original
equipment manufacturers) continue to win share of local markets
    ** Adds that it continues to see investment opportunity in
ICE-skewed suppliers
    ** "This quarter's results indicate that investors continue
to await further changes to capital allocation plans in the
quarters to come, and are willing to reward those able to take
decisive action," says Morgan Stanley 
      
 Company               New PT      Old PT
 Magna                 $60         $65 
 International MG.TO               
 Adient PLC  ADNT.N    $32         $35
 Visteon Corp  VC.O    $135        $145