[ET Net News Agency, 14 August 2019] Nomura lowered its target price for Nexteer
Automotive (01316) to HK$7.2 from HK$11.5 and maintained its "neutral" rating.
The research house said Nexteer's 1H result was below Nomura's expectation. To reflect
the results, it cut FY2019/20 revenue forecasts by 11% on average and reduced GPM by 2.0pp
in each year, leading to 30%/32% reduction in its net profit forecasts.
Nomura said weak production trajectories from US OEM client should remain a drag on
Nexteer's China performance in the near term. (KL)