- Meritor posted a healthy beat relative to sell-side expectations in the June quarter, as the company leverages strong Class 8 production volume.
- The Class 8 cycle will likely peak in 2022, but the fall-off in 2023 may not be as sharp, and medium-duty trucks should keep growing into 2023.
- Meritor has built a credible e-axle program to participate in truck electrification, and the company's near-term $500M business win target looks secure.
- Management has executed well on cost/efficiency programs, and the shares seem to overly discount the coming Class 8 peak, offering an attractive return from today's price.
For further details see:
Meritor Already Discounting A Significant Correction In Commercial Vehicles