Monday, April 25, 2011

Barclays Likes Lear (LEA) (JCI) (TEN) (DAN) in Auto Parts Sector

Barclays (NYSE:BCS) analyst Brian Johnson recommends buying shares of Ford (NYSE:F) and General Motors (NYSE:GM) as the stock price of both companies have fallen over 14 percent recently, but he also likes the auto parts sector, eyeing companies like Dana Holding (NYSE:DAN), Johnson Controls (NYSE:JCI), Lear Corp. (NYSE:LEA) and Tenneco (NYSE:TEN).

Of particular note for the parts industry is the commercial truck segment, where things are taking off because orders have come back strong.

As for auto sales, the reason Johnson is bullish there is from price increases on vehicles from the manufacturers, Turbo Ecoboost technology from Ford, and production estimates are probably understated.

Tenneco closed Thursday at $43.60, gaining $0.30, or 0.69 percent. Lear Corporation ended the day at $48.97, rising $0.74, or 1.53 percent. Johnson Controls closed the session at $40.73, up $0.60, or 1.50 percent. Dana Holding closed at $18.33, increasing $0.51, or 2.86 percent.

No comments: