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UBS initiated coverage of 13 auto stocks, as the broker explained traders really should target on advancement chances and not a looming strike.
Joseph Spak led an initiation that has occurred as the looming United Car Staff strike has pressured shares.
Ford Motor Co.
F,
which UBS earlier rated as offer, now has a obtain rating Basic Motors
GM,
which was neutral, also is now a invest in. Tesla
TSLA,
was held at neutral.
Most of the other organizations weren’t previously rated: Aptiv
APTV,
Mobileye
MBLY,
and Borgwarner
BWA,
had been rated invest in though American Axle
AXL,
Visteon
VC,
Adient
ADNT,
Rivian
RIVN,
Magna
MGA,
Dana
DAN,
and Lear
LEA,
all ended up rated neutral.
For the automakers, “contract information will make any difference, but some degree of wage/price tag inflation was to be envisioned,” and for the suppliers, four months of a strike at each of the Detroit three automakers has been priced in.
For legacy OEMs, peak pricing and ICE/BEV transition problems are well appreciated and UAW promote-off developed additional desirable risk/reward profile, the analyst said. Tesla is effectively-positioned for the long expression, but the analyst is waiting around for a better entry issue.
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