In a note released Friday, Deutsche Bank analyst Rod Lache boosted his price targets on auto suppliers across the board, saying that "Given the macro risks, we continue to believe that investors should focus on suppliers that offer secular (above market) growth opportunities, as these companies are now on sale."
His top pick remains Delphi Automotive DLPH, trading at 9.4x its 2016 estimate. He also feels BorgWarner BWA has become attractive on a valuation basis for a company that should remain one of the largest beneficiaries of increasingly fuel efficiency standards.
Key Changes: Company Target and Price Ratings
American Axle & Manufacturing AXL - $21.00 to $25.00 - Buy
Autoliv ALV - $90.00 to $95.00 - Hold
BorgWarner - $63.00 to $69.00 - Hold to Buy
Dana Corporation DAN - $25.00 to $26.00 - Hold
Delphi - $90.00 to $92.00 - Buy
Lear Corporation LEA - $103.00 to $104.00 - Hold
Magna International MGA - $102.00 to $112.00 - Hold
Tenneco TEN - $67.00 to $69.00 - Hold
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