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BofA International Analysis raised its worth targets and rankings on auto suppliers together with Aptiv (NYSE:APTV), BorgWarner (NYSE:BWA), Magna (NYSE:MGA) and Gentex (NASDAQ:GNTX) as automakers report better-than-expected gross sales.
The agency bumped Aptiv (APTV), BorgWarner (BWA), and Magna (MGA) from Impartial to Purchase, and Gentex (GNTX) from Underperform to Impartial.
“Thus far in 2023, volumes have exceeded expectations, notably within the US the place fleet gross sales have been strong,” a workforce of analysts led by John Murphy mentioned in a July 6 notice. “Volumes in Europe have stunned to the upside and, whereas China stays gradual, volumes have largely been according to expectations.”
This week, Ford (F) and Common Motors (GM) reported second-quarter unit gross sales leaping by 9.9% and 19%, respectively. The U.S. new-vehicle market was “surprisingly sturdy” within the first half, in line with Cox Automotive.
Suppliers have additionally been aided by uncooked materials and freight prices which have eased, BofA mentioned.
“Given these bettering dynamics, we anticipate sturdy 2Q:23 outcomes and better 2023 outlooks, particularly from suppliers,” the analysts mentioned.
Worth targets prior vs up to date:
- APTV: $130 vs $140
- BWA: $54 vs $67
- GNTX: $26 vs $33
- MGA: $65 vs $85
Shares of the suppliers had been increased in afternoon buying and selling.
