Market Overview

UPDATE: Goldman Sachs Reiterates Neutral Rating, Lowers PT on Federal-Mogul Corporation

Related FDML
Federal-Mogul Reports Expansion of Powertrain Unit, Relocates Engine Bearing Plants in Shanghai
Strong Results From 2 Leading Auto Suppliers Fails To Move Sector
When Rate Hikes Come, They Will Ripple Across U.S. Economy (Fox Business)

In a report published Monday, Goldman Sachs Group reiterated its Neutral rating on Federal-Mogul Corporation (NASDAQ: FDML), but lowered its price target from $12.00 to $10.50.

Goldman Sachs noted, “We expect the weak demand environment will continue to weigh on results in the near term including the adverse mix shift away from diesel and heavy duty engines. That said, we believe that decremental margins will improve in 4Q (vs. 3Q) as the company will have sufficient time to flex down its temp workforce and take advantage of short week programs with the bulk of Q4 production cuts expected in December. This is in sharp contrast to Q3 where September production cuts were given with little notice. Mr. Broderick, the CEO of the Vehicle Solutions Group mentioned that they are planning to shift the focus back to the premium category. We believe this strategy could imply an uptick in SG&A expense as they try to re-establish the importance of the brand to the professional installer base.”

Federal-Mogul Corporation closed on Friday at $8.40.

Latest Ratings for FDML

Oct 2014Goldman SachsUpgradesSellNeutral
Apr 2013Goldman SachsUpgradesSellNeutral
Mar 2013Goldman SachsDowngradesNeutralSell

View More Analyst Ratings for FDML
View the Latest Analyst Ratings

Posted-In: Goldman Sachs GroupAnalyst Color Price Target Analyst Ratings


Related Articles (FDML)

Around the Web, We're Loving...

Get Benzinga's Newsletters