ADNT - Lear and Aptiv attract two-notch upgrades from BofA
Bank of America dove into the auto supplier sector on Tuesday with an overall view that volume will hit the skids again, but investors should hit the gas on select stocks. Analyst John Murphy: "Despite the cut to our volume forecasts (more significant in 2022E, but also modest for 2023-2025E), we continue to believe that the near-term volume pressure is setting up for a more robust capital goods replacement cycle over the mid/long-term." Looking ahead, the firm expects a peak around 2025, which is seen setting up a broad-based constructive trade on the group to persist into 2022-2023. On the ratings front, BofA upgraded Lear Corporation (NYSE:LEA) and Aptiv (NYSE:APTV) to Buy from Underperform in two-notch moves. Visteon Corporation (VC) and Adient (ADNT) were upgraded to Neutral from Underperform after pointing to the production volume recovery trend. Shares of Lear (LEA) added 0.85% in premarket trading and Aptiv (APTV) rose
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Lear and Aptiv attract two-notch upgrades from BofA