Auto stocks look attractive, analysts are betting big on these players



a man standing in front of a computer: Auto stocks look attractive, analysts are betting big on these players


© Nishant Kumar
Auto stocks look attractive, analysts are betting big on these players

September auto sales cheered not only the industry but the equity market, too, as they also signal an improvement in the economy battered by the coronavirus outbreak.

The September numbers showed an encouraging uptick, thanks to positive sentiments across rural and semi-urban areas, a shift towards personal mobility and the expectations of a strong demand during the festival season.

Among the two-wheeler companies, Hero MotoCorp and Bajaj Auto saw their volumes growing 16.9 percent and 23.8 percent, respectively, from the year-ago period.

Eicher saw a growth of 3.7 percent, indicating that demand is picking up not only in the affordable segment but also in the premium category. TVS Motors, however, posted a decline of 0.5 percent in its monthly sales.

In the tractors segment, Escorts’ sales grew 8.9 percent from the year-ago period as they were

Read More

Read More

Tesla’s electric car plans are simply ‘fantasy’, warn analysts

Then there’s the issue of manufacturing the cells. Musk tweeted on Monday that Tesla would have to make its own battery cells in Berlin and Fremont to meet its ambitious goals, alongside increasing cell purchases from the likes of Panasonic and LG.  

“However, even with our cell suppliers going at maximum speed, we still foresee significant shortages in 2022 and beyond unless we also take action ourselves,” he wrote.

It is a move other carmakers have shied away from given their lack of expertise and the high investment costs.

“I’m really surprised that they’re taking that leap themselves,” says Tony Posawatz, a consultant who sits on the board of Tesla rival Lucid Motors. “I think this is going to be a bit harder than what they think, and I don’t think we’ll see a lot of volume out of that for quite some time.

Musk also claimed to have a

Read More

Read More

MetLife Looks to Sell P&C Auto and Home Insurance Business: KBW Analysts

MetLife is pursuing a sale of its property/casualty auto and home insurance business, according to a report by analysts following the company

Keefe, Bruyette & Woods (KBW) analysts, Ryan Krueger and Meyer Shields, said the insurer is looking at a sales price of between #3 billion and $4 billion, which they say is “reasonable for a personal lines business with a solid track record.”

“P&C has never seemed like a complete strategic fit despite MET’s worksite distribution efforts, and a $3-4b price would significantly exceed MET’s 6.5x multiple,” wrote he analysts.

MetLife Auto & Home writes about $3.7 billion in annual premiums through both independent agencies and worksite sales.

From 2015-2019 the property/casualty business generated an average operating ROE of 13% and a combined ratio of 97%, according to KBW.

Operating earnings were $344 million in 2018 and $249 million in 2019.

Krueger and Shields think “strategic buyers would be

Read More

Read More