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!