A Tale of 2 Automotive Stocks to Buy, , on October 22, 2020 at 10:15 pm

Financial News
By
On October 22, 2020
In Financial News
Tags:

Cars are ubiquitous. Love them or hate them, you can’t get around them – or sometimes, get around without them. This makes them attractive as long-term investments for investors who know that the market, while dynamic and changing, is not going away. Deutsche Bank analyst Emmanuel Rosner has been following the state of the car market and sees big gains down the road.”We expect strong earnings and positive outlooks from the US autos group, driven by faster than expected global vehicle demand recovery, higher production outlook, robust pricing, and benefits from operating leverage and deep cost actions,” Rosner noted. With this in mind, we’ve pulled up the latest information on Deutsche Bank’s two automotive picks. Using TipRanks’ Stock Comparison tool, we were able to evaluate these two tickers alongside each other to get a sense of what the analyst community has to say. Nio (NIO)First on our list is Nio, an electric car maker in China. While it’s not always talked about much in the West, China has a huge – and growing – car market. The country’s 1.4 billion people have been urbanizing for decades, and it’s estimated that the potential customer base in the Chinese car market may eventually exceed 1 billion people. For now, China’s annual car production is already greater than that of the US, the EU, or Japan. The country has become a major exporter of automobiles.In all of this, Nio is on the forefront of the electric car segment. Nio’s success has come on the shoulders of Tesla (TSLA), as the American company has been blazing a path in China for electric cars. Nio has been following with new models and some innovative ideas.One in particular is offering customers alternative fueling systems for electric cars. Nio is unveiling a Battery-as-a-Service option, which will allow customers to buy an electric car – with a subscription for replacement batteries. Nio’s strategy, of follow and improving on a leader, has paid off – the stock is up 580% year-to-date.Covering the stock for Deutsche Bank, analyst Edison Yu writes, “We see an emerging class of Chinese automakers backed by large, well-capitalized tech titans and ambitious local governments looking to disrupt the auto industry… With the China EV market already the world’s largest and now inflecting upward after the recent downturn, we believe NIO is well positioned to take share in the premium segment, having put major emphasis on post-purchase customer service, alleviating charging anxiety, and developing a robust software/AI-centric vehicle ecosystem.”It’s not surprising, then, why Yu gives the stock a Buy rating. (To watch Yu’s track record, click here)Overall, Nio is another company with a Moderate Buy consensus rating. The analysts have given the shares 6 Buys, 3 Holds, and 1 Sell recently. The shares are currently priced at $26.50 and are gaining rapidly, pulling away from the average price target of $20.21. (See Nio’s stock analysis at TipRanks.)General Motors (GM)Next up, GM, is the largest of Detroit’s famed automakers. It’s headquartered in the iconic Renaissance Center, and has a line-up of brands that is just as iconic: Chevrolet, Buick, and Cadillac, to name just a few. The company’s $53 billion market cap has given it pockets deep enough to withstand the current pandemic climate.In an announcement that has been widely taken as an indicator of a recovering auto industry, GM reported total sales of 665,192 vehicles in the third quarter. While down 10% year-over-year, this result was significant improvement sequentially. Mid-size SUVs and crossover models led the sales numbers, and Cadillac sedans continue to perform well in the luxury segment.That’s the background to upbeat forecasts for the Q3 earnings. GM saw a 50-cent per share loss last quarter, but the upcoming results for the third quarter are expected to show a swing to positive, with a $1.35 EPS profit.Turning to Deutsche Bank’s Emmanuel Rosner again, the analyst notes, “…strong demand, mix and pricing environment for US trucks, and sharp rebound in residual values.” Rosner adds that GM is ramping up its factories again, as “the company produces as many trucks as it can in North America, to refill its inventory and meet recovering demand, launches its redesigned full-size SUVs, and benefits from ongoing recovery in its China market and operations.””Beyond the quarter, we continue to strongly advocate GM should spin off its electric vehicle operations and capabilities into a stand-alone company to force the market to fully recognize its robust EV technology and upcoming lineup,” Rosner opined.To this end, Rosner rates GM shares a short-term Buy. (To watch Rosner’s track record, click here)Overall, GM’s Moderate Buy analyst consensus rating comes from 12 Buys, 3 Holds, and 1 Sell set in recent weeks. Shares are selling for $37.41 and have an average price target of $40.87, implying a one-year upside of 9% for the stock. (See GM stock analysis on TipRanks)To find good ideas for automotive stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.,

A Tale of 2 Automotive Stocks to BuyCars are ubiquitous. Love them or hate them, you can’t get around them – or sometimes, get around without them. This makes them attractive as long-term investments for investors who know that the market, while dynamic and changing, is not going away. Deutsche Bank analyst Emmanuel Rosner has been following the state of the car market and sees big gains down the road.”We expect strong earnings and positive outlooks from the US autos group, driven by faster than expected global vehicle demand recovery, higher production outlook, robust pricing, and benefits from operating leverage and deep cost actions,” Rosner noted. With this in mind, we’ve pulled up the latest information on Deutsche Bank’s two automotive picks. Using TipRanks’ Stock Comparison tool, we were able to evaluate these two tickers alongside each other to get a sense of what the analyst community has to say. Nio (NIO)First on our list is Nio, an electric car maker in China. While it’s not always talked about much in the West, China has a huge – and growing – car market. The country’s 1.4 billion people have been urbanizing for decades, and it’s estimated that the potential customer base in the Chinese car market may eventually exceed 1 billion people. For now, China’s annual car production is already greater than that of the US, the EU, or Japan. The country has become a major exporter of automobiles.In all of this, Nio is on the forefront of the electric car segment. Nio’s success has come on the shoulders of Tesla (TSLA), as the American company has been blazing a path in China for electric cars. Nio has been following with new models and some innovative ideas.One in particular is offering customers alternative fueling systems for electric cars. Nio is unveiling a Battery-as-a-Service option, which will allow customers to buy an electric car – with a subscription for replacement batteries. Nio’s strategy, of follow and improving on a leader, has paid off – the stock is up 580% year-to-date.Covering the stock for Deutsche Bank, analyst Edison Yu writes, “We see an emerging class of Chinese automakers backed by large, well-capitalized tech titans and ambitious local governments looking to disrupt the auto industry… With the China EV market already the world’s largest and now inflecting upward after the recent downturn, we believe NIO is well positioned to take share in the premium segment, having put major emphasis on post-purchase customer service, alleviating charging anxiety, and developing a robust software/AI-centric vehicle ecosystem.”It’s not surprising, then, why Yu gives the stock a Buy rating. (To watch Yu’s track record, click here)Overall, Nio is another company with a Moderate Buy consensus rating. The analysts have given the shares 6 Buys, 3 Holds, and 1 Sell recently. The shares are currently priced at $26.50 and are gaining rapidly, pulling away from the average price target of $20.21. (See Nio’s stock analysis at TipRanks.)General Motors (GM)Next up, GM, is the largest of Detroit’s famed automakers. It’s headquartered in the iconic Renaissance Center, and has a line-up of brands that is just as iconic: Chevrolet, Buick, and Cadillac, to name just a few. The company’s $53 billion market cap has given it pockets deep enough to withstand the current pandemic climate.In an announcement that has been widely taken as an indicator of a recovering auto industry, GM reported total sales of 665,192 vehicles in the third quarter. While down 10% year-over-year, this result was significant improvement sequentially. Mid-size SUVs and crossover models led the sales numbers, and Cadillac sedans continue to perform well in the luxury segment.That’s the background to upbeat forecasts for the Q3 earnings. GM saw a 50-cent per share loss last quarter, but the upcoming results for the third quarter are expected to show a swing to positive, with a $1.35 EPS profit.Turning to Deutsche Bank’s Emmanuel Rosner again, the analyst notes, “…strong demand, mix and pricing environment for US trucks, and sharp rebound in residual values.” Rosner adds that GM is ramping up its factories again, as “the company produces as many trucks as it can in North America, to refill its inventory and meet recovering demand, launches its redesigned full-size SUVs, and benefits from ongoing recovery in its China market and operations.””Beyond the quarter, we continue to strongly advocate GM should spin off its electric vehicle operations and capabilities into a stand-alone company to force the market to fully recognize its robust EV technology and upcoming lineup,” Rosner opined.To this end, Rosner rates GM shares a short-term Buy. (To watch Rosner’s track record, click here)Overall, GM’s Moderate Buy analyst consensus rating comes from 12 Buys, 3 Holds, and 1 Sell set in recent weeks. Shares are selling for $37.41 and have an average price target of $40.87, implying a one-year upside of 9% for the stock. (See GM stock analysis on TipRanks)To find good ideas for automotive stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

,

Instant Quote

Enter the Stock Symbol.

Select the Exchange.

Select the Type of Security.

Please enter your First Name.

Please enter your Last Name.

Please enter your phone number.

Please enter your Email Address.

Please enter or select the Total Number of Shares you own.

Please enter or select the Desired Loan Amount you are seeking.

Please select the Loan Purpose.

Please select if you are an Officer/Director.

High West Capital Partners, LLC may only offer certain information to persons who are “Accredited Investors” and/or “Qualified Clients” as those terms are defined under applicable Federal Securities Laws. In order to be an “Accredited Investor” and/or a “Qualified Client”, you must meet the criteria identified in ONE OR MORE of the following categories/paragraphs numbered 1-20 below.

High West Capital Partners, LLC cannot provide you with any information regarding its Loan Programs or Investment Products unless you meet one or more of the following criteria. Furthermore, Foreign nationals who may be exempt from qualifying as a U.S. Accredited Investor are still required to meet the established criteria, in accordance with High West Capital Partners, LLC’s internal lending policies. High West Capital Partners, LLC will not provide information or lend to any individual and/or entity that does not meet one or more of the following criteria:

1) Individual with Net Worth in excess of $1.0 million. A natural person (not an entity) whose net worth, or joint net worth with his or her spouse, at the time of purchase exceeds $1,000,000 USD. (In calculating net worth, you may include your equity in personal property and real estate, including your principal residence, cash, short-term investments, stock and securities. Your inclusion of equity in personal property and real estate should be based on the fair market value of such property less debt secured by such property.)

2) Individual with $200,000 individual Annual Income. A natural person (not an entity) who had individual income of more than $200,000 in each of the preceding two calendar years, and has a reasonable expectation of reaching the same income level in the current year.

3) Individual with $300,000 Joint Annual Income. A natural person (not an entity) who had joint income with his or her spouse in excess of $300,000 in each of the preceding two calendar years, and has a reasonable expectation of reaching the same income level in the current year.

4) Corporations or Partnerships. A corporation, partnership, or similar entity that has in excess of $5 million of assets and was not formed for the specific purpose of acquiring an interest in the Corporation or Partnership.

5) Revocable Trust. A trust that is revocable by its grantors and each of whose grantors is an Accredited Investor as defined in one or more of the other categories/paragraphs numbered herein.

6) Irrevocable Trust. A trust (other than an ERISA plan) that (a)is not revocable by its grantors, (b) has in excess of $5 million of assets, (c) was not formed for the specific purpose of acquiring an interest, and (d) is directed by a person who has such knowledge and experience in financial and business matters that such person is capable of evaluating the merits and risks of an investment in the Trust.

7) IRA or Similar Benefit Plan. An IRA, Keogh or similar benefit plan that covers only a single natural person who is an Accredited Investor, as defined in one or more of the other categories/paragraphs numbered herein.

8) Participant-Directed Employee Benefit Plan Account. A participant-directed employee benefit plan investing at the direction of, and for the account of, a participant who is an Accredited Investor, as that term is defined in one or more of the other categories/paragraphs numbered herein.

9) Other ERISA Plan. An employee benefit plan within the meaning of Title I of the ERISA Act other than a participant-directed plan with total assets in excess of $5 million or for which investment decisions (including the decision to purchase an interest) are made by a bank, registered investment adviser, savings and loan association, or insurance company.

10) Government Benefit Plan. A plan established and maintained by a state, municipality, or any agency of a state or municipality, for the benefit of its employees, with total assets in excess of $5 million.

11) Non-Profit Entity. An organization described in Section 501(c)(3) of the Internal Revenue Code, as amended, with total assets in excess of $5 million (including endowment, annuity and life income funds), as shown by the organization’s most recent audited financial statements.

12) A bank, as defined in Section 3(a)(2) of the Securities Act (whether acting for its own account or in a fiduciary capacity).

13) A savings and loan association or similar institution, as defined in Section 3(a)(5)(A) of the Securities Act (whether acting for its own account or in a fiduciary capacity).

14) A broker-dealer registered under the Exchange Act.

15) An insurance company, as defined in Section 2(13) of the Securities Act.

16) A “business development company,” as defined in Section 2(a)(48) of the Investment Company Act.

17) A small business investment company licensed under Section 301 (c) or (d) of the Small Business Investment Act of 1958.

18) A “private business development company” as defined in Section 202(a)(22) of the Advisers Act.

19) Executive Officer or Director. A natural person who is an executive officer, director or general partner of the Partnership or the General Partner, and is an Accredited Investor as that term is defined in one or more of the categories/paragraphs numbered herein.

20) Entity Owned Entirely By Accredited Investors. A corporation, partnership, private investment company or similar entity each of whose equity owners is a natural person who is an Accredited Investor, as that term is defined in one or more of the categories/paragraphs numbered herein.

Please read the notice above and check the box below to continue.

Singapore

168 Robinson Road,
Capital Tower, Singapore 068912
+65 3105 1295

Taiwan

5th Floor, No. 1-8, Section 5, Zhongxiao East Road, Taipei

Hong Kong

R91, 3rd Floor,
Eton Tower, 8 Hysan Ave.
Causeway Bay, Hong Kong
+852 3002 4462

Australia

44 Martin Place, Sydney 2000 Australia
+02 8319 3232

Indonesia

Millennium Centennial Center, 38th Floor, Jl. Jend. Sudirman Kav. 25
Jakarta 12920, Indonesia

Market Coverage