[ET Net News Agency, 10 October 2019] Nomura lowered its target price for Nexteer
Automotive (01316) to HK$7 from HK$7.2 and maintained its "neutral" rating.
The research house said current Street earnings forecasts seem to have settled to
reflect a weaker outlook post 1H results, but Nomura believes the General Motors (GM)
strike could remain a near-term drag on Nexteer's share price, as the company derives 30%
of its revenue and backlog from GM's US operations.
Nomura noted that talks between GM and UAW (United Auto Workers union) have resumed, but
so far no clear path to a full resolution is seen. Nexteer was not involved in the
process, leaving it in a passive role such that inventory management and production volume
make-up look to us as if they will be insufficient to fully mitigate the negatives. (KL)
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01316 NEXTEER
Nominal 
3.950 +0.030 (+0.765%) Research Report
10/10/2019 10:31
{I-bank focus}Nomura cuts Nexteer (01316) to HK$7; "neutral"
| Remark: | Real time quote last updated: 18/04/2024 17:59 |
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