Auto supplier stocks rose on Monday after ratings initiation by Exane BNP Paribas.
The price target on Goodyear (GT) was set to $12, implying a 7.4% decrease from last price. Analysts noted “Commodities are a headwind for GT, and while we believe there will be sufficient pricing, we remain on the sidelines until raw materials begin to deflate, leading to rapid margin expansion as pricing remains.”
The price target on Adient (ADNT) was set to $32, implying a 4.3% decrease from last price. “We view ADNT as a cyclical pure play, with minimal secular exposure (as a positive or negative), so we await more stable macro environment.”
American Axle, meanwhile, has been assigned a $7 PT that implies a 1.2% increase from last price. Recently, Citi lowered PT on the stock, from $9 from $8, citing softer 2022 auto production outlook, incremental inflation and FX changes.
Earlier today, the automobile driveline and drivetrain maker announced acquisition of Tekfor Group for €125M. BNP sees “a minor laggard in the transition to electrification among powertrain suppliers.”