JP Morgan Maintains Neutral Rating and $49 PT on Tenneco Automotive

A report from J.P. Morgan reiterates its Neutral rating and $49 price target on Tenneco Automotive TEN. The report states, “Neutral-rated TEN stock fell 9% (vs. S&P 500 flat) on Friday reflecting contribution margin shortfall in NA Ride Control business, and downward revision to the commercial vehicle (CV) backlog. The contribution margin shortfall was driven by excess manufacturing costs related to previously planned capacity changes that are being delayed by changes in a certain customer's product plans – the issue is transitory in nature, but we sense the associated costs will persist for another 6-12 months." TEN closed Friday at $33.29.