* We analyse fundamental impact of Brexit on the EU auto sector in light of sharp derating, concluding that the sell-off is overdone
* We are more cautious but we do not expect a sales collapse in Europe; strong Q2 results should lead to some sector recovery
* Ratings unchanged but on average 2% EPS and 15% TP cuts; highlight our Buy ratings on PSA, Renault, Schaeffler and Hella