[ET Net News Agency, 4 December 2018] Morgan Stanley lowered its target price for
Nexteer Automotive Group (01316) to HK$12 from HK$13 and maintained its "equal-weight"
rating.
The research house cut its 2019/20 earnings forecasts for Nexteer by 5% and 4%
respectively. It said the earnings cut mainly reflect cuts to revenue due to slower China
and US auto sales growth.
Morgan appreciates Nexteer's leading industry positioning in ADAS product development,
however, it sees downside risks to its China business growth given increasing pricing
competition in China amid the prolonged weakness, while revenue contribution from new
products takes longer to realize. (KL)