EU autos & parts: 'A very strong year ahead' - JPM

ElringKlinger AG

05/01/2021 08:28

** For the European automotive sector, 2021 will be a year
of profound recovery with a global volume increase of 11% thanks
to restocking across all channels, JP Morgan says
    ** Previously discussed obstacles such as emissions and
autonomous driving have depressed stock prices, making the
sector relatively cheap, the broker says
    ** The discount is the biggest for original equipment
manufacturers (OEMs), reflecting the FCA/PSA merger  FCHA.MI ,
Renault's restructuring  RENA.PA  and Volkswagen's  VOWG_p.DE 
transition to electric vehicles, JPM says
    ** JPM adds it favours companies that could benefit from
restructuring, high production and exposure to such technologies
as advanced driver assistance or alternative powertrains
    ** The broker ups German parts maker Continental  CONG.DE 
to "overweight" from "neutral" and its smaller rival
Elringklinger  ZILGn.DE  to "neutral" from "underweight"
    ** It cuts BMW  BMWG.DE , Britain's TI Fluid Systems
 TIFS.L  and German parts maker Jost Werke  JSTG.DE  to
"neutral" from "overweight" and Italy's Pirelli  PIRC.MI  to
"underweight" from "neutral"

 ((zuzanna.szymanska@tr.com))