Credit Suisse lowered its target price for Nexteer Automotive (01316) to HK$8 from HK$10.4 and maintained its "outperform" rating.
Nexteer reported its order backlog as of 3Q to be US$25.4bn,
up 2%. The research house said the stable order backlog is mainly because the company adjusted down China's production forecast.
The United Auto Workers' strike on General Motors, the largest customer of Nexteer (accounted for 43% of total revenue), lasted for five weeks. Considering the negative strike impact and weak China business, Credit Suisse lowered its 2019-21 EPS forecasts by 17%.