Analyst Ditches Automakers For Auto Dealers, Parts Companies
Portfolio Pulse from Adam Eckert
Morgan Stanley analyst Adam Jonas downgraded Ford, GM, and Rivian due to concerns about the auto industry's outlook, including rising inventories and credit losses. Conversely, the firm upgraded several auto dealers, citing resilience and potential benefits from slower EV adoption.
September 25, 2024 | 4:12 pm
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POSITIVE IMPACT
Asbury Automotive was upgraded by Morgan Stanley from Underweight to Equal-Weight, with a price target increase from $190 to $240, due to resilience in the franchise dealer model.
Asbury Automotive's upgrade is due to its resilience in the franchise dealer model, likely leading to a positive impact on its stock price.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 100
POSITIVE IMPACT
AutoNation was upgraded by Morgan Stanley from Equal-Weight to Overweight, with a price target increase from $145 to $200, due to benefits from slower EV adoption.
AutoNation's upgrade reflects its potential benefits from slower EV adoption, likely resulting in a positive short-term stock impact.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 100
POSITIVE IMPACT
Group 1 Automotive was upgraded by Morgan Stanley from Equal Weight to Overweight, with a price target increase to $430, due to resilience in the franchise dealer model.
Group 1 Automotive's upgrade reflects its resilience and potential benefits from a slower EV adoption pace, likely boosting its stock price.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 100
POSITIVE IMPACT
Lithia Motors was upgraded by Morgan Stanley from Underweight to Equal-Weight, with a price target increase from $225 to $310, due to strong performance in the franchise dealer model.
Lithia Motors' upgrade reflects its strong performance in the franchise dealer model, likely resulting in a positive short-term stock impact.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 100
POSITIVE IMPACT
Penske Automotive was upgraded by Morgan Stanley from Underweight to Overweight, with a price target increase from $115 to $180, due to strong performance in the franchise dealer model.
Penske Automotive's upgrade is due to its strong performance and resilience in the franchise dealer model, likely leading to a positive stock impact.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 100
POSITIVE IMPACT
Sonic Automotive was upgraded by Morgan Stanley from Underweight to Equal-Weight, with a price target increase from $40 to $58, due to resilience in the franchise dealer model.
Sonic Automotive's upgrade is due to its resilience in the franchise dealer model, likely leading to a positive impact on its stock price.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 100
NEGATIVE IMPACT
Ford was downgraded by Morgan Stanley from Overweight to Equal-Weight, with a price target cut from $16 to $12, due to expected market share losses and pricing headwinds.
Ford's downgrade reflects concerns about market share losses and pricing challenges, leading to a reduced price target. This is likely to negatively impact the stock in the short term.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100
NEGATIVE IMPACT
GM was downgraded by Morgan Stanley from Equal-Weight to Underweight, with a price target cut from $47 to $42, due to concerns about exposure to China and excess capacity.
GM's downgrade is driven by concerns over its exposure to China and excess capacity, which could negatively affect its stock price in the short term.
CONFIDENCE 90
IMPORTANCE 85
RELEVANCE 100
NEGATIVE IMPACT
Rivian was downgraded by Morgan Stanley from Overweight to Equal-Weight, with a price target cut from $16 to $13, due to capital intensity concerns.
Rivian's downgrade is due to concerns about the capital intensity required for its technological developments, likely impacting its stock negatively.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 100