🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

Dire assessment on U.S. auto from BAML

Published 06/16/2017, 08:49 AM
© Reuters.  Dire assessment on U.S. auto from BAML
GM
-
BAC
-
F
-
STLAM
-
AN
-
KMX
-
MGA
-
GNTX
-
BWA
-
AXL
-
PAG
-
GPI
-
SAH
-
LAD
-
APTV
-
LEA
-
CAR
-
CARZ
-
CPS
-
HTZGQ
-
ADNT
-
  • Bank of America Merrill Lynch (NYSE:BAC) issues a warning on U.S. auto that could reverberate around trading on suppliers and manufacturing.
  • The firm sees a "swift and material" downturn that will lead to a U.S. sales growth fall to a 13M unit annual selling rate by around 2021 and a "tsunami" of off-lease volume whacking pricing. Raw material costs are seen potentially moving in the wrong direction for the industry.
  • Lithia Motors (NYSE:LAD) is singled out with a cut to Underperform, while price target reduction are fired off on F, GM, FCAU, ADNT, AXL, BWA, CPS, DLPH, GNTX, LEA, MGA, AN, GPI, LAD, PAG, SAH and KMX. Volatile auto rental names Avis Budget (NASDAQ:CAR) and Hertz (NYSE:HTZ) could also be impacted by the BAML gloom.
  • Related ETF: CARZ.
  • Source: Bloomberg


Original article

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.