Credit Suisse bullish on auto sector despite near-term weakness

BWA

22/04/2021 12:32

** Credit Suisse says it is bullish on auto and auto stocks
going into their earnings, given a strong demand environment,
even though there could be a near-term pause in profit growth
due to transitory factors
    ** Raises PT on shares of Ford  F.N , General Motors  GM.N ,
Adient  ADNT.N , Aptiv  APTV.N , BorgWarner  BWA.N , Dana Inc
 DAN.N , Lear Corp  LEA.N  and Magna International  MGA.N 
    ** Ford shares rise about 2% premarket as Wolfe Research
upgrades to "outperform"; BWA up 1.3% while GM dips 0.2%; DAN,
ADNT, APTV, LEA untraded  urn:newsml:reuters.com:*:nL4N2MF2RE
    ** Credit Suisse says GM, and APTV are "focus" stocks that
could outperform consensus estimates; remains cautious on ADNT
and MGA
    ** J.P. Morgan, on the other hand, lowers FY estimates on GM
and F on account of a very large increase in commodity prices
and semiconductor shortage issue
    ** F, DAN report earnings next week, while results from GM,
BWA, ADNT, MGA will come in the following week
    ** The S&P 1500 automobiles & components index  .SPCOMAU ,
that includes high-flying Tesla Inc  TSLA.O , is up about 11%
this year, in line with S&P 500's  .SPX  rise

 (Reporting by Medha Singh in Bengaluru)
 ((medha.singh@thomsonreuters.com))