[ET Net News Agency, 6 September 2019] UBS Global Research lowered its target price for
Nexteer Automotive (01316) to HK$7.1 from HK$7.7 but upgraded its rating to "neutral" from
"sell".
The research house said Nexteer's growth has halted amid soft global auto production and
its North America clients' major platform shifts. Assuming a mild recovery in China
starting from 2020 and a flat US production ahead, UBS expects Nexteer to struggle to see
a meaningful earnings recovery.
Without significant organic growth opportunities in sight, UBS expects Nexteer to be
traded as a cyclical stock subject to the US and China auto cycles. (KL)