JPMorgan Raises Auto Sector Price Targets on ‘V-shaped’ Recovery

JPMorgan Raises Auto Sector Price Targets on ‘V-shaped’ Recovery

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The US auto market is back on track as fast as it fell, making the V-shaped recovery real.

New vehicle sales and used vehicle prices are recovering in May and June almost as fast as they declined in March and April, according to JPMorgan. “We didn’t call it, nor did we expect it, but numerous data points all suggest the US auto industry is in the midst of a once fabled but clearly no longer mythical ‘V-shaped recovery,’” JPMorgan’s sector analyst wrote in a report.

That rebound prompted JPMorgan to raise its Y 2020 US light vehicle seasonally adjusted annual sales rate (SAAR) by 1-M, to 14.5-M. The figure is way above estimates from IHS Automotive of 13.2-M, also pushed JPMorgan to raise EPS estimates for automakers and suppliers, and led to higher price targets for Tesla, General Motors, and Ferrari.

Have a healthy weekend, Keep the Faith!

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Paul Ebeling

Paul A. Ebeling, a polymath, excels, in diverse fields of knowledge. Pattern Recognition Analysis in Equities, Commodities and Foreign Exchange, and he it the author of "The Red Roadmaster's Technical Report on the US Major Market Indices, a highly regarded, weekly financial market commentary. He is a philosopher, issuing insights on a wide range of subjects to over a million cohorts. An international audience of opinion makers, business leaders, and global organizations recognize Ebeling as an expert.