Tenneco (NYSE:TEN), Dana Holding (NYSE:DAN), Lear (NYSE:LEA), ArvinMeritor (NYSE:ARM) Among Barclays' Auto Favorites,

Even after a strong 2010 Barclays (NYSE:BCS) says they believe the auto sector could have more room to grow, including their favorites Tenneco (NYSE:TEN), Dana Holding (NYSE:DAN), Lear (NYSE:LEA) and ArvinMeritor (NYSE:ARM), as well as Ford (NYSE:F) and GM (NYSE:GM).

Barclays said, "Even after strong 4Q10 and YTD 2011 performance auto stocks may have room for further strength. Based on our analysis of prior recoveries, in particular in the early 1990s, we believe that auto stocks may have another 6-9 months of outperformance left for three reasons: 1) continued growth in sales with the economic recovery back on track, 2) room for further multiple expansion, even to the point of 'overshooting'; and 3) continued supportive Fed policy - the withdrawal of which typically marks the end of automotive outperformance. We believe that OEMs, which have generally lagged parts, still offer relative value, reiterating our Overweight for both Ford and GM and a new price target of $23 for F (26% potential upside) and an increased price target of $48 for GM (23% potential upside); in addition, we continue to like less-than-fully valued strong adoption curve growth stories - Tenneco (reiterating OW with a PT $57 (32% potential upside), as well as turnaround values Dana Holding (reiterating OW with a $25 PT, 39% potential upside), and Lear (upgrading to OW with a $123 PT, 16% potential upside). We also continue to like ArvinMeritor which offers leverage to the strong cyclical recovery in commercial vehicles."

Tenneco was trading at $44.29, gaining $2.38, or 5.68 percent, as of 2:39 PM EST. Dana Holding was at $18.55, up $.073, or 4.10 percent. Lear was at $108.02, gaining $2.22, or 2.10 percent. ArvinMeritor was trading at $21.99, up $0.57, or 2.66 percent.