JPMorgan's China Trip Influences Outlook On Automakers

JPMorgan released a note Thursday regarding their view of automakers through 2016 and into 2017. Specifically, this note comes on the heels of a recent trip the sell-side firm took to China, where they met 29 automakers, suppliers and consultants.

They highlight multiple takeaways from the trip, such as:

• China auto sales to finish 2016 strong, but 2017 unclear due to varying potential of government support.
• Automakers such as General Motors Company GM and Ford Motor Company F should finish 2016 strong due to China industry trends.
• Despite a tougher environment in 2016, JPMorgan believes that GM and Ford have enough company-specific levers to pull that can help shares beat investor performance.
• Strong share and margin more sustainable than most investors imagine.

Shares of GM and Ford remained relatively flat on the day. As of Thursday afternoon, GM was trading at $28.23, and Ford trading at $12.48.