VC - Visteon Goodyear American Axle added to short-term catalyst list at Deutsche

Deutsche Bank sees tradable action for Visteon Corporation ( NASDAQ: VC ), Goodyear Tire ( NASDAQ: GT ), and American Axle & Manufacturing ( NYSE: AXL ) ahead of their respective investor presentations in Q1.

On the bullish end, Visteon ( VC ) was added to the Catalyst Call Buy list on expected volume recovery and cost controls likely to be outlined in its February earnings release. Additionally, hotly anticipated technology updates are likely to promote ample upside in March.

"Most importantly, the company has its Capital Markets Day slated for early March, where it will likely provide more details on its technology portfolio, including EV solutions, and how these could support continued best-in-class growth above market beyond this year,” the team wrote. "We expect Visteon to outline new midterm targets, potentially including 14% margin by 2026, which we believe could enable the stock to rerate higher as investors better appreciate the GoM and margin expansion opportunity ahead.”

On the other hand, both Goodyear Tire & Rubber Company ( GT ) and American Axle ( AXL ) were selected as top bearish calls for the short term.

Both companies are expected to miss earnings expectations for upcoming Q4 reports. Additionally, persistent inflation and industry inefficiencies are expected to weigh on guidance for the full-year, amplifying downside potential after their respective earnings releases.

“We expect [Goodyear guidance] to indicate that the challenging dynamics impacting 2H22 should continue at least through the first half of 2023 with some modest improvement in 2H as volumes begin improving and commodities unwind,” the note explained. “At the same time, there could be incremental risk to pricing as commodities prices decline, compounded by additional pressure from non-materials.”

Both names were added to the Catalyst Call Sell list on Thursday.

Read more on Qualcomm’s recent deal with Visteon Corporation .

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