Even after a strong 2010 Barclays (NYSE:BCS) says they believe the auto sector could have more room to grow, including their favorites Tenneco (NYSE:TEN), Dana Holding (NYSE:DAN), Lear (NYSE:LEA) and ArvinMeritor (NYSE:ARM), as well as Ford (NYSE:F) and GM (NYSE:GM).
Barclays said, "Even after strong 4Q10 and YTD 2011 performance auto stocks may have room for further strength. Based on our analysis of prior recoveries, in particular in the early 1990s, we believe that auto stocks may have another 6-9 months of outperformance left for three reasons: 1) continued growth in sales with the economic recovery back on track, 2) room for further multiple expansion, even to the point of 'overshooting'; and 3) continued supportive Fed policy - the withdrawal of which typically marks the end of automotive outperformance. We believe that OEMs, which have generally lagged parts, still offer relative value, reiterating our Overweight for both Ford and GM and a new price target of $23 for F (26% potential upside) and an increased price target of $48 for GM (23% potential upside); in addition, we continue to like less-than-fully valued strong adoption curve growth stories - Tenneco (reiterating OW with a PT $57 (32% potential upside), as well as turnaround values Dana Holding (reiterating OW with a $25 PT, 39% potential upside), and Lear (upgrading to OW with a $123 PT, 16% potential upside). We also continue to like ArvinMeritor which offers leverage to the strong cyclical recovery in commercial vehicles."
Tenneco was trading at $44.29, gaining $2.38, or 5.68 percent, as of 2:39 PM EST. Dana Holding was at $18.55, up $.073, or 4.10 percent. Lear was at $108.02, gaining $2.22, or 2.10 percent. ArvinMeritor was trading at $21.99, up $0.57, or 2.66 percent.
Showing posts with label ArvinMeritor. Show all posts
Showing posts with label ArvinMeritor. Show all posts
Monday, January 10, 2011
Wednesday, December 15, 2010
KeyBanc Bullish on TRW Automotive (NYSE:TRW), Autoliv (NYSE:ALV), ArvinMeritor (NYSE:ARM), Dana Holding (NYSE:DAN), Lear (NYSE:LEA), Stoneridge Inc. (NYSE:SRI), Tenneco (NYSE:TEN)
KeyBanc is bullish on the automotive and commercial vehicle markets heading into 2011, and they like TRW Automotive (NYSE:TRW), Autoliv (NYSE:ALV), ArvinMeritor (NYSE:ARM), Dana Holding (NYSE:DAN), Lear (NYSE:LEA), Stoneridge Inc. (NYSE:SRI) and Tenneco (NYSE:TEN) in the sector.
KeyBanc said, "Heading into 2011, we have increased confidence in the ongoing recovery in both the automotive and commercial vehicle markets and believe that select stocks with exposure to those verticals are likely to continue to outperform. As such: 1) we are upgrading our rating on shares of TRW Automotive to BUY from HOLD and establishing a $69 price target; 2) we are raising our price targets on Autoliv Inc. to $92 from $76, ArvinMeritor, Inc. to $29 from $25, Dana Holding Corporation to $20 from $17, Lear Corporation to $127 from $104, Stoneridge, Inc. to $19 from $16, and Tenneco Automotive Inc. to $55 from $40; 3) we are raising our 2010 and 2011 automotive and commercial vehicle forecasts and introducing a 2012 forecast; and 4) we are raising 2010 and 2011 earnings estimates accordingly. Our top picks are ARM (#1), TEN (#2), LEA (#3), TRW (#4), and for small cap investors SRI."
TRW Automotive closed Tuesday at $53.03, up $0.40, or 0.76 percent. Autoliv, Inc. closed at $78.73, up $0.41, or 0.52 percent. ArvinMeritor ended at $19.97, up $0.68, or 3.53 percent. Dana Holding was up to $17.05, increasing $0.59, or 3.58 percent. Stoneridge Inc. closed at $15.85, up $0.54, or 3.53 percent. Tenneco ended at $41.22, up 1.11, or 2.77 percent.
KeyBanc said, "Heading into 2011, we have increased confidence in the ongoing recovery in both the automotive and commercial vehicle markets and believe that select stocks with exposure to those verticals are likely to continue to outperform. As such: 1) we are upgrading our rating on shares of TRW Automotive to BUY from HOLD and establishing a $69 price target; 2) we are raising our price targets on Autoliv Inc. to $92 from $76, ArvinMeritor, Inc. to $29 from $25, Dana Holding Corporation to $20 from $17, Lear Corporation to $127 from $104, Stoneridge, Inc. to $19 from $16, and Tenneco Automotive Inc. to $55 from $40; 3) we are raising our 2010 and 2011 automotive and commercial vehicle forecasts and introducing a 2012 forecast; and 4) we are raising 2010 and 2011 earnings estimates accordingly. Our top picks are ARM (#1), TEN (#2), LEA (#3), TRW (#4), and for small cap investors SRI."
TRW Automotive closed Tuesday at $53.03, up $0.40, or 0.76 percent. Autoliv, Inc. closed at $78.73, up $0.41, or 0.52 percent. ArvinMeritor ended at $19.97, up $0.68, or 3.53 percent. Dana Holding was up to $17.05, increasing $0.59, or 3.58 percent. Stoneridge Inc. closed at $15.85, up $0.54, or 3.53 percent. Tenneco ended at $41.22, up 1.11, or 2.77 percent.
Monday, December 13, 2010
GAAP Tax Weighs on ArvinMeritor (NYSE:ARM)
According to Barclays (NYSE:BCS), investor concerns about the GAAP tax rate on ArvinMeritor (NYSE:ARM) is unwarranted, and shouldn't have any impact on cash taxes.
Barclays said, "ARM management presented a solid view of the company's prospects but investors appear overly concerned with cautious guidance and GAAP taxes: The ARM investor day highlighted, in our view, a strong management team and a strong product line well-positioned in key commercial truck markets. Despite some initial disappointment, we believe 1) the guidance was based on very conservative build assumptions, and 2) the tax rate is a GAAP tax rate has no impact on cash taxes."
Barclays maintains an "Overweight" rating on ArvinMeritor, which closed Friday at $20.10, up $0.16, or 0.80 percent. They raised their price target on them from $17 to $25.
Barclays said, "ARM management presented a solid view of the company's prospects but investors appear overly concerned with cautious guidance and GAAP taxes: The ARM investor day highlighted, in our view, a strong management team and a strong product line well-positioned in key commercial truck markets. Despite some initial disappointment, we believe 1) the guidance was based on very conservative build assumptions, and 2) the tax rate is a GAAP tax rate has no impact on cash taxes."
Barclays maintains an "Overweight" rating on ArvinMeritor, which closed Friday at $20.10, up $0.16, or 0.80 percent. They raised their price target on them from $17 to $25.
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