[ET Net News Agency, 19 January 2018] Nomura lifted its target price for Nexteer
Automotive (01316) to HK$19 from HK$14.8, but downgraded its rating from "buy" to
"neutral".
In view of its strong bonds with GM and with 40% of its revenue from the US auto market,
the research house believes Nexteer is the major beneficiary of the US tax cut bill.
Hence, it adjusted its FY2018/19 earnings by an average of 5% to reflect this.
But Nomura maintained its FY2018 US auto market forecasts and believes the tax changes
are unlikely to affect auto demand significantly. And with sales momentum for GM and Ford
likely to remain lacklustre globally in FY2018 (altogether 60% of Nexteer's revenue).
Nomura thinks cost efficiency alone will not be enough to sustain Nexteer's historical
growth trajectory. It also sees limited company-specific catalysts ahead that could drive
the share price significantly higher. (KL)
|
|
|
|
|
|
|
|
|
|
Super Quote | Detail Quote | Interactive Chart | Transaction | Related News | Related Securities | Company Information | Dividend Records | Short Sell
01316 NEXTEER
Nominal 
3.940 +0.060 (+1.546%) Others
19/01/2018 13:59
[I-bank focus]Nomura ups Nexteer Automotive (01316) to HK$19
| Remark: | Real time quote last updated: 26/04/2024 14:57 |
| Real-time basic market prices of Hong Kong securities are provided by HKEx; a Designated Website authorized by the HKEx Group to provide the Service |