RIDE - Few opportunities found in auto sector according to Morgan Stanley

The auto sector offers little shelter from market gyrations, according to Morgan Stanley. In two reports released in tandem, a team of analysts led by Adam Jonas reviewed a slew of  auto manufacturing and dealer stocks, coming to quite a dim view of both. In short, the team argues that inflationary pressures plaguing the market at present are arguably most pronounced in autos. As such, outperformance is not something investors should anticipate. Downbeat on Dealers Highlighted as perhaps the most problematic amid recent ongoing market dynamics is the auto dealer space. Jonas’ team argues that the outperformance of auto dealer stocks like Lithia Motors (NYSE:LAD), AutoNation (NYSE:AN), Group 1 Automotive (GPI), Sonic Automotive (NYSE:SAH), and Asbury Automotive Group (NYSE:ABG) in 2022 cannot continue.  The team noted that the impact of supply constraints have managed to keep gross profit per unit figures across the industry all-time-high. Yet, as consumers weaken, the

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Few opportunities found in auto sector, according to Morgan Stanley