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March 23, 2014
16:34 EDTVCVisteon shares could reach $100 in a year, Barron's says
Shares of Visteon could hit $100, driven by share repurchases and improving results, Barron's contends in a feature article. Reference Link
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October 9, 2015
09:00 EDTVCBarclays says sell Tesla ahead of 'significant' production miss
The outlook for the U.S. Autos sector has improved recently, but the risks for one high-profile name in the space are rising, according to a Barclays analyst, who upgraded his industry view this morning but cut his rating on Tesla (TSLA). SELL TESLA: Barclays analyst Brian Johnson downgraded Tesla Motors to Underweight, his firm's equivalent of a sell rating, as he believes the stock may be "challenged in the months ahead" with negative data points emerging. The Model X rollout did not bring a rise in shares while "several factors" could push margins below current consensus estimates, Johnson told investors in a research note. The analyst believes the "slow" Model X ramp supports his view that Tesla will "significantly miss" its 2015 delivery guidance. While bulls on the stock view Tesla as the next Ford (F), "crossing the chasm" into mainstream car production is "harder than it looks," argues Johnson, who cut his price target on shares of the electric car maker to $180 from $190. BETTER OUTLOOK FOR U.S. AUTOS: In a separate note this morning, Johnson upgraded the U.S. Autos & Auto Parts industry to Neutral from Negative, saying the China car market is likely to have a "softer landing" than he previously expected. Further, the Volkswagen (VLKAY) diesel scandal is unlikely to negatively impact European production trends or drive a major overhang on most U.S. autos names, Johnson told investors. Noting that his colleagues in the broader industrials space are turning more negative, Johnson said the autos sector is looking more attractive in comparison, pointing specifically to strong sales trends in the U.S. and Western Europe along with stabilizing sales in China. The analyst recommends owning Mobileye (MBLY), Harman (HAR) and Visteon (VC), which he believes should all benefit from their exposure to the trend toward connected cars. Johnson also suggests owning auto components maker Johnson Controls (JCI), which he thinks will benefit from an acceleration away from diesel cars in Europe. CAUTION ON JAPANESE AUTOS: Meanwhile this morning, Jefferies analyst Takaki Nakanishi downgraded Honda Motor (HMC) and Toyota (TM) to Hold after cutting his view on the Japan Autos & Auto Parts sector to Bearish. The Volkswagen diesel scandal will trigger a stronger regulatory environment and an industry-wide worsening of the long-term earnings environment, according to Nakanishi, who cut his price target for Honda shares to $34.24 from $37.92 and lowered his price target for Toyota shares to $133.54 from $151.63. PRICE ACTION: In pre-market trading, Tesla slid 3.4% to $219 per share. The stock has dropped about 8.6% over the last month prior to today's open.
05:46 EDTVCU.S. Autos & Auto Parts sector upgraded to Neutral at Barclays
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