Autos to be hurt by macro headwinds in 2023 - Scotiabank, cuts PT

Linamar

29/09/2022 12:27

** Brokerage Scotiabank says a likely recession in 2023 and
higher energy prices in Europe may lead to lower sales volumes
of auto makers and component manufacturers, and pose headwinds
to margins 
    ** Trims PT for ABC Technologies Holdings Inc  ABCT.TO 
(PT:C$5.5), US-listed shares of Magna International Inc
 MG.TO (PT:$65), Martinrea International Inc  MRE.TO 
(PT:C$12.50), Linamar Corp  LNR.TO  (PT:C$75)
    ** Says production has run below demand for roughly two
years but there's potential for inventory restocking 
    ** Easing cost pressures, lesser volatility in production
schedules and commercial recoveries from OEMs may drive earnings
growth in 2023 - brokerage adds
    ** YTD, ABCT, MG, MRE, LNR down between 18.4% and 44.8% 
 (Reporting by Priyamvada C in Bengaluru)
 ((Priyamvada.c@thomsonreuters.com))