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Citi Names Stocks To Watch Ahead Of Detroit's International Auto Show

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Citi Names Stocks To Watch Ahead Of Detroit's International Auto Show

Analysts at Citi Research on Friday offered a preview into what stocks may offer upside ahead of the North American International Auto Show in Detroit next week.

Mobileye NV (NYSE: MBLY) Itay Michaeli feels the company’s presentation will “yield greater investor appreciation for the company’s expanding competitive lead and core DNA in the all-important field of machine vision/learning.”

Delphi Automotive PLC (NYSE: DLPH): “Delphi remains amongst our higher conviction picks as we see the company participating in several “Car of the Future” tracks in the years ahead. Market share gains in active safety and new technology recently unveiled at CES reinforced the company’s strong positioning.”

BorgWarner Inc. (NYSE: BWA): “With valuation screening well, we think sentiment on BWA stock might improve throughout the year as investors gain comfort with recent overhangs. We also note that balance sheet deployment remains another potential 2015 catalyst.”

Magna International Inc. (USA) (NYSE: MGA): “We expect Magna to unveil a solid outlook reflecting rising global demand, new business ramps and cost execution.”

Lear Corporation (NYSE: LEA): “EPS estimate sits above consensus and we expect Lear to provide a solid and mildly conservative 2015 outlook at the Detroit Auto Show. We continue to regard Lear as a hybrid of sorts with an Electrical business exposed to “Car of the Future” trends and a Seating business exposed to preferred cyclical areas with self-help elements in place and limited “content out” risk.”

Visteon Corp (NYSE: VC): “Detroit should be eventful for Visteon as the company is expected to discuss cash deployment plans post the HVCC divestiture. Besides this, we expect to hear management formally unveil a Visteon purely focused don Electronics tied to “Car of the Future” trends.”

American Axle & Manufact. Holdings, Inc. (NYSE: AXL): “We expect a solid guide from American Axle and recently took our target up with our “Go Long” Pickups Part 9 report.”

Goodyear Tire & Rubber Co (NASDAQ: GT): “While GT doesn’t tend to formally guide in Detroit, we do expect investors to focus on the status of prior 2015 earnings parameters and overall market conditions. We judge that headwinds from FX and soft Q4 tire volume data (led by Europe winter) are outweighed by lower oil prices and resulting raw material cost reductions.”

Tower International Inc (NYSE: TOWR): “We have trimmed 2015 estimates to reflect FX and S. America pressure. Our target falls slightly to $34 from $35 though still representing a robust ETR of >40%.”

Autoliv Inc. (NYSE: ALV): “At the Detroit Auto Show we expect a strategic and product focus and particularly look for updates around the company’s Active Safety strategy and goals.”

Latest Ratings for LEA

DateFirmActionFromTo
Sep 2019DowngradesBuyNeutral
Aug 2019MaintainsOverweight
Jul 2019MaintainsNeutral

View More Analyst Ratings for LEA
View the Latest Analyst Ratings

Posted-In: Auto Show Citi Detroit Itay MichaeliAnalyst Color Long Ideas Analyst Ratings Trading Ideas Best of Benzinga

 

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