Himanshu Patel
Himanshu Patel
belief company cost earnings heightens likely meaningful reassure rebound targets
The company's specificity on 2006 cost targets ... is likely to reassure the market, and heightens our belief that the company will see a meaningful earnings rebound in 2006.
controls given remains strength
The long-term outlook, particularly given end-market strength in the controls business, remains robust.
diesel european production slowing weigh western worries
However, near-term worries on slowing diesel penetration and Western European production could weigh on the stock.
beat britain expecting fairly forecasts france guidance holding key markets reaffirm reasonably share upbeat
We are expecting PSA to beat their forecasts and to reaffirm fairly upbeat guidance for 2003. Their key markets of Britain and France are holding up well and their market share is reasonably healthy.
accounting change concerns internal issues none raise thesis
While none of these issues are enough to change our thesis on GM, they do raise our concerns on the company's internal accounting controls.
billion cash corporate largely light robust sale
We see a $US2 billion cash injection as meaningful, even in light of GM's robust corporate liquidity. This sale was largely unanticipated by the market.
admittedly ahead given performance potential recent reluctant weak
While fundamentals are admittedly weak, given the stock's weak recent performance, we are reluctant to get incrementally bearish, particularly ahead of a potential restructuring announcement.
correction maintain overweight recent safety vehicle
We maintain our overweight (rating), as we think a recent correction in this well-diversified vehicle safety supplier has been unjustified.
consensus downside risk upside
We still see more downside than upside risk to 2007 consensus earnings.
both expecting exposure fairly french home limited partly robust safer thanks
We're expecting both of them to do well. The French carmakers are safer than the Germans, partly because they have limited U.S. exposure and partly thanks to a fairly robust home market.