EUROPEAN AUTOS: We initiate coverage of European Auto Manufacturers with a positive view on the sector but a selective approach to stock-picking. Along the value chain, 12-month forward P/Es are V-shaped: suppliers and car dealers/aftermarket have higher valuations, while OEMs are liked less, implying that suppliers will benefit and OEMs suffer from the emergence of electric and autonomous vehicles. Our in-depth analysis leads us to conclude that the opposite outcome is just as likely. For stock-picking, we focus on momentum, consensus and sentiment. We initiate the coverage as follows: VW, Porsche and BMW on OP; Daimler and Peugeot on N; Renault on UP.