tiprankstipranks
Lear downgraded on likely sector correction at Wells Fargo
The Fly

Lear downgraded on likely sector correction at Wells Fargo

Wells Fargo analyst Colin Langan downgraded Lear to Equal Weight from Overweight with a price target of $139, down from $149. Auto makers and suppliers have rallied since the end of Q3 but most earnings drivers have weakened, except currency, Langan tells investors in a research note. The analyst lowered 2023 global light vehicle production forecast to 1.8% from 7.1%, below the S&P’s 4.0%. The view reflects a U.S. sales recovery and inventory build as well as volume declines in Europe and China, Langan tells investors in a research note. Moreover, inflationary costs will likely persist next year, and automakers may be less receptive to cost recoveries given their own price/mix headwinds, says the analyst. His revised earnings estimates are 9% below consensus on average. This sets up a likely sector correction with 2023 guidance, and likely a better entry point, early next year, Langan contends. As such, he downgraded both Magna and Lear.

Published first on TheFly

See today’s best-performing stocks on TipRanks >>

Read More on LEA:

Trending

Name
Price
Price Change
S&P 500
Dow Jones
Nasdaq 100
Bitcoin

Popular Articles