Morgan Stanley cuts auto suppliers PT on EV slowdown
** Morgan Stanley cuts PT on auto parts suppliers Adient ADNT.N, Magna International MG.TO and Visteon Corp VC.O
** Brokerage says suppliers continue to adjust to slowing EV production
** Magna and ADNT cut FY24 revenue forecasts citing weaker EV demand, while suppliers that are ICE (internal combustion engine)-skewed such as Borgwarner BWA.N and American Axle Manufacturing AXL.N reiterated FY guidance
** Says China remains a headwind as domestic OEMs (original equipment manufacturers) continue to win share of local markets
** Adds that it continues to see investment opportunity in ICE-skewed suppliers
** "This quarter's results indicate that investors continue to await further changes to capital allocation plans in the quarters to come, and are willing to reward those able to take decisive action," says Morgan Stanley
Company | New PT | Old PT |
Magna InternationalMG.TO | $60 | $65 |
Adient PLC ADNT.N | $32 | $35 |
Visteon Corp VC.O | $135 | $145 |
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