Why This Goldman Sachs Analyst Is Downgrading Auto Suppliers
Portfolio Pulse from Priya Nigam
Goldman Sachs analyst Mark Delaney downgraded Magna International Inc (MGA) from Buy to Neutral and Aurora Innovation Inc (AUR) from Neutral to Sell, citing a likely deceleration in auto sales and slower content per vehicle growth. Delaney also noted concerns about Magna's backlog due to slower BEV ramps from key customers like Ford and GM, and a more measured ramp cadence for Aurora's AV trucks. Shares of MGA and AUR declined by 5.64% and 10.77%, respectively.
January 03, 2024 | 5:19 pm
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Goldman Sachs downgraded Aurora Innovation from Neutral to Sell, due to expectations of a more measured ramp cadence for its AV trucks and recent stock rally.
The Sell rating indicates a bearish view on Aurora's short-term prospects, particularly with the slower expected ramp-up of AV trucks, which could negatively impact the stock price.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
NEGATIVE IMPACT
Goldman Sachs downgraded Magna International from Buy to Neutral, expecting slower content per vehicle growth and potential backlog issues due to slower BEV ramps from major customers.
The downgrade by Goldman Sachs suggests a less optimistic outlook for Magna's growth, which could lead to reduced investor confidence and a potential decrease in the stock price in the short term.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90