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Daimler, Peugeot Top EU Auto Picks; Avoid BMW, Renault: Exane 2013-12-03 08:00:11.528 GMT
By Brian Lysaght Dec. 3 (Bloomberg) -- Outperform picks are Daimler, Peugeot, Faurecia, Exane says in note re-initiating coverage on EU autos. * Key underperform picks are BMW, Fiat and Renault * EU autos are good value relative to cap goods, trading 15% below long-term PE of 11x: Exane * Sees Europe as pricing “bright spot” in 2014-15 as stabilizing demand coincides with capacity cuts; premium autos pricing won’t benefit, will be flat * Daimler has pricing/cost advantages, consensus on FCF, margin is too low; Peugeot benefits from improved EU pricing, Chinese div. * BMW “lost in stagnation” next year; Renault, Fiat face pricing challenges in emerging markets: Exane * See yday: EU Autos Reach 26-Yr High in Nov.; Peugeot, Conti Lead Gains {NSN MX6JP46S972I <go>} * NOTE: SXAP index up 36% ytd, best of 19 SXXP groups
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To contact the reporter on this story: Brian Lysaght in London at +44-20-7330-7908 or blysaght@bloomberg.net
To contact the editor responsible for this story: Gaurav Panchal at +44-20-7392-0511 or gpanchal2@bloomberg.net