UBS ups Schaeffler as automotive hurdles already priced-in

Schaeffler AG

10/09/2024 10:36

** UBS upgrades Schaeffler  SHA_p.DE  as it thinks the
automotive sector's hurdles such as margin pressure and higher
electrification-driven investments, as well as higher inflation,
are already priced in the German car parts maker's stock 
    ** The broker raises its rating to "neutral" from "sell" but
cuts PT by 10% to 4.4 euros
    ** "Given recent share moves, we think buyside has taken a
more cautious stance on the stock until further detail is
provided for the combined entity (with VTSC)," the analysts
write in a note, referring to merger with drivetrain maker
Vitesco Technologies  VTSCn.DE 
    ** Schaeffler's shares slip 3% by 0853 GMT, they are down
25% YTD 
    ** UBS remains cautious on the stock and cuts its 2024-2026
earnings per share (EPS) forecast by 20% 
    ** Out of 14 analysts that cover Schaeffler, nine rate the
stock "strong buy" or "buy", ​three rate it "hold" and two​ rate
the stock "strong sell" or "sell"

 (Reporting by Andrey Sychev)
 ((andrey.sychev@thomsonreuters.com))