Goldman shifts to Neutral on Ferrari, Sell on Volvo Cars
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Ferrari (NYSE:RACE) was raised to Neutral from a prior Sell, moved to Neutral on BMW (OTCPK:BMWYY) from Buy, and Sell on Volvo Cars (OTCPK:VLVOF) in a broad note on European automakers.
A team of analysts led by George Galliers explained that while the industry is likely to âretain its strong standing,â new industry standards may constrain growth. As such, winners and losers may become bifurcated.
âThe European industry is rapidly transitioning towards BEVs, a transition which opens the market to share swings. Today, incumbent neo-premium and mass market brands account for c.72% of sales in the EU+EFTA+UK (2022); we believe current OEM equity valuations suggest this share is at risk,â the team wrote. âOver the next decade, we believe Tesla (TSLA) and Chinese OEMs will take market share in Europe. We refresh our estimates and price targets for our coverage (OEMs and parts), and upgrade Ferrari from Sell to Neutral, while downgrading BMW from Buy to Neutral and Volvo Cars from Neutral to Sell.â
They added that lower-end models remain at risk given the ambitions of Chinese automakers in the market. However, the lack of visibility into the inroads of Asian automakers into Europe leaves this a question mark at present.
Read more on UBSâ expectation for auto production in 2023.