Citi opens overweight Magna, underweight Lear pair trade

After assessing the initial Q1 setups for the U.S. auto stocks based on recent data points, Citi opened an overweight Magna (MGA), underweight Lear (LEA) pair trade. The firm says March data affirm its preference for automakers over suppliers into Q1. From a revenue exposure perspective, Magna “seems somewhat more de-risked” than Lear, having less exposure to China, slightly more exposure to Europe and somewhat less trim-mix exposure, the analyst tells investors in a research note.