[ET Net News Agency, 6 August 2019] HSBC Global Research lifted its target price for
Nexteer Automotive (01316) to HK$11.7 from HK$11.1 and upgraded its rating to "buy" from
"hold" as negatives appear already priced in.
The research house said 67% of Nexteer's revenue comes from US sales - its products are
very much in line with US OEMs' strategy of focusing on pickup trucks and large SUVs
(sport utility vehicle) and CUVs (crossover utility vehicles).
HSBC thinks the company can leverage the pickup story at US OEMs given its leading
position in Rack Assist Electric Power Steering (REPS), which is used to handle heavier
loads.
After its Morocco plant was completed in July, targeting the Europe market, HSBC sees a
greater likelihood of expansion in Europe. HSBC thinks the market has incorrectly
interpreted Nexteer's ability to gain market share. It expects Nexteer to see minimal
impact from US-China trade tensions as most of its products are produced locally in the
US. (KL)
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01316 NEXTEER
Nominal 
3.940 +0.060 (+1.546%) Research Report
06/08/2019 17:10
{I-bank focus}HSBC upgrades Nexteer (01316) to HK$11.7
| Remark: | Real time quote last updated: 26/04/2024 18:00 |
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