FRANKFURT/PARIS/MILAN (dpa-AFX) - A divergence emerged in the European automotive sector on Thursday, with a performance gap opening between manufacturers and their suppliers. While the four German carmakers Mercedes-Benz, Porsche AG, Volkswagen, and BMW shed between 0.9% and 1.5%, the supplier segment saw Aumovio lead the gainers with a 4% rally. The industry was largely driven by a series of contrasting analyst commentaries.
Bank of America maintained its "Buy" rating on Aumovio following a change in analyst coverage. The new lead expert, Stephen Benhamou, highlighted the significant 60% discount at which the former Continental supply division is trading relative to its peers. He noted that the stock offers high-quality growth, whereas its current valuation appears to reflect a sense of desperation.
In contrast, Kepler Cheuvreux issued downgrades for sports car manufacturer Porsche AG, Opel and Peugeot parent Stellantis, and commercial vehicle maker Daimler Truck, whose shares also slipped 1.2% on Thursday.
Michael Raab downgraded Porsche AG to "Reduce," anticipating that the Zuffenhausen-based company will remain in a transitional phase for two to three years, while the conflict in the Middle East creates headwinds even for the 911 clientele. He also advised reducing positions in Daimler Truck, arguing that truck manufacturers are typically the first to feel the impact of geopolitical tensions in the Middle East. As such, they serve as a leading indicator for the global economy./tih/ag/stk
