Crypto Whales Are Loading Up — Are You?
New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.
Strong SAAR
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Citi's Itay Michaeli noted that incentives, which were aggressive early in the month, cooled off toward the end of the month. However, the analyst also noted industry average transaction prices appear to be running slightly higher, given the strong mix.
Discounts Help, Mix Strong
Among vehicle categories, the analyst noted picks-ups and mid-size SUVs are doing well and this bodes well for General Motors Company (NYSE: GM) and Ford Motor Company (NYSE: F), which are experiencing pricing growth more than the industry. Accordingly, the firm believes that September SAAR is trending at a strong rate, with support from incentives, the negative impact of which will be offset by a strong mix.
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Citi also noted that auto companies are up against a strong year-over-year comparison, given the 18 million-unit pace of September last year. While noting that the monthly sales results are due on October 3, Citi said auto stocks have recently reacted negatively to the release irrespective of the results.
Cheer For OEMs
As far as OEMs are concerned, Citi noted that September SAAR could help reduce inventory levels, heading into the fourth quarter. The firm also reminded that both GM and Ford reaffirmed their 2016 guidance earlier this month.
- Ford: $13 price target (based on an average of EV/EBITDAP and P/E valuation on Citi's 2016 earnings per share estimate).
- General Motors: $50 price target (based on 5.5 times its 2016 adjusted EBITDAP of $13 billion, with the valuation raised from 4.5 times previously, given Citi's increasing confidence in the company's positioning for capturing future new and large mobility opportunities).
At time of publication, Ford was down 0.25 percent at $11.98, while GM was down 0.41 percent at $31.67.
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New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.