Are We Nearing the Bottom of the Cycle? Bank of America Bets High on Auto Suppliers Amid Industry Revival
Portfolio Pulse from Anusuya Lahiri
Bank of America Securities analyst John Murphy has upgraded the stock ratings of auto suppliers Aptiv, BorgWarner, Gentex, and Magna International, and raised their price targets. He also increased the price targets for Tesla, General Motors, and Ferrari. Murphy's upgrades are based on improving industry dynamics, with supplier estimates 5%-10% above consensus over 2023 to 2025. He expects strong 2Q23 results and higher 2023 outlooks, particularly from suppliers.
July 06, 2023 | 3:41 pm
News sentiment analysis
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POSITIVE IMPACT
Aptiv's stock rating was upgraded from Neutral to Buy, with a price target increase from $130 to $140.
The upgrade in rating and increase in price target indicates a positive outlook for Aptiv, which could lead to a rise in its stock price in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
BorgWarner's stock rating was upgraded from Neutral to Buy, with a price target increase from $54 to $67.
The upgrade in rating and increase in price target indicates a positive outlook for BorgWarner, which could lead to a rise in its stock price in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
General Motors' price target was raised to $72 from $70.
The increase in price target indicates a positive outlook for General Motors, which could lead to a rise in its stock price in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
Gentex's stock rating was upgraded from Underperform to Neutral, with a price target increase from $26 to $33.
The upgrade in rating and increase in price target indicates a positive outlook for Gentex, which could lead to a rise in its stock price in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
Magna International's stock rating was upgraded from Neutral to Buy, with a price target increase from $65 to $85.
The upgrade in rating and increase in price target indicates a positive outlook for Magna International, which could lead to a rise in its stock price in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
Ferrari's price target was raised from €350 to €380.
The increase in price target indicates a positive outlook for Ferrari, which could lead to a rise in its stock price in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
Tesla's price target was raised from $225 to $300.
The increase in price target indicates a positive outlook for Tesla, which could lead to a rise in its stock price in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100