European auto parts: Berenberg sees recovery underway

Stabilus SE

27/01/2021 08:49

** Berenberg expects a recovery in 2021 for light vehicle
production, hence remains upbeat for the year, despite Q1
headwinds such as COVID-19 uncertainty, semiconductor shortage
    ** Medium-term volume expectations seem sufficiently rebased
and a stronger focus on cost efficiency and cash should support
growth and margins, the broker says
    ** Moreover, toughening emission regulations continue to
push demand for more energy-efficient cars, it adds
    ** Berenberg sees a strong finish to 2020, citing much
faster recovery in China and a limited impact from the various
COVID-19-related restrictions on European production
    ** The brokerage assumes that both COVID-19 and the
semiconductor shortage situations will normalise in H2, with
some H1 semiconductor-related losses also being recouped 
    ** Faurecia  EPED.PA , rated "buy", is Berenberg's preferred
name among the EU auto suppliers in 2021
    ** Among auto industrials, it now prefers Norma Group
 NOEJ.DE  over Stabilus  STAB.DE , rating both "buy"
    ** It reiterates its "buy" rating on Valeo  VLOF.PA ,  
Schaeffler  SHA_p.DE  and keeps "hold" on Continental  CONG.DE  

 ((marta.frackowiak@thomsonreuters.com))