[Auto] Goodyear, Adient, American Axle initiated with Neutral rating at BNP

[FazzNoth]

Auto supplier stocks rose on Monday after ratings initiation by Exane BNP Paribas.

In a report released today, BNP analysts began coverage on Goodyear Tire & Rubber (NASDAQ:GT), Adient (NYSE:ADNT) and American Axle & Manufacturing (NYSE:AXL), with a Neutral rating.

 

The price target on Goodyear (GT) was set to $12, implying a 7.4% decrease from last price. Analysts noted "Commodities are a headwind for GT, and while we believe there will be sufficient pricing, we remain on the sidelines until raw materials begin to deflate, leading to rapid margin expansion as pricing remains."

The price target on Adient (ADNT) was set to $32, implying a 4.3% decrease from last price. "We view ADNT as a cyclical pure play, with minimal secular exposure (as a positive or negative), so we await more stable macro environment."

 

American Axle, meanwhile, has been assigned a $7 PT that implies a 1.2% increase from last price. Recently, Citi lowered PT on the stock, from $9 from $8, citing softer 2022 auto production outlook, incremental inflation and FX changes.

Earlier today, the automobile driveline and drivetrain maker announced acquisition of Tekfor Group for €125M. BNP sees "a minor laggard in the transition to electrification among powertrain suppliers."

 

Adient stock traded up $1.71 during midday trading on Monday, reaching $34.74. The company had a trading volume of 6,036 shares, compared to its average volume of 1,118,569. The company has a market capitalization of $3.29 billion, a P/E ratio of 3.51, a P/E/G ratio of 0.94 and a beta of 2.91. Adient has a 12-month low of $30.53 and a 12-month high of $53.17. The firm’s fifty day simple moving average is $40.70 and its 200-day simple moving average is $43.45. The company has a debt-to-equity ratio of 1.30, a current ratio of 1.36 and a quick ratio of 1.11.

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