MS lowers estimates for European auto parts makers below consensus on tariff, FX risks

Autoliv

26/06/2025 09:27

** Morgan Stanley cuts its estimates for European auto parts makers below consensus citing tariff and FX headwinds, and a low light vehicle production outlook

** "Margin and investment convergence with original equipment manufacturers is almost over" - MS

** It lowers its 2025 revenue estimates across the sector by 7%, margins by 77 bps and EPS by 33%

** The brokerage says the negative impact of tariffs should start to show up in June with the full impact from July, expecting generalised guidance reductions for all OEMs impacting the parts makers

** It downgrades Continental CONG.DE to "equal weight" from "overweight" on high valuation multiples and balanced risk-reward

** It also cuts Opmobility OPM.PA to "underweight" from "overweight" on high multiples, limited growth and margins with high leverage

   ** MS upgrades Valeo VLOF.PA to "overweight" from "underweight" saying it is the only auto parts company under its coverage for which its EBIT forecasts are not below consensus and pointing to its "attractive" product portfolio

COMPANY
RATING
OLD RATING
Continental AG CONG.DE
Equal-weight
Overweight
Opmobility OPM.PA
Underweight
Overweight
Valeo VLOF.PA
Overweight
Underweight
Autoliv ALV.N
Equal-Weight
Equal-Weight
Forvia FRVIA.PA
Equal-Weight
Equal-Weight

($1 = 0.8549 euros)

 (Reporting by Cian Muenster)

 ((Cian.muenster@thomsonreuters.com))