Renault is at the top of the Cac 40 charts on Friday. According to Bank of America Securities, market fears are “overblown.”
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Bank of America boosts the automotive sector | Photo credits: Renault / Olivier MARTIN-GAMBIER
Weekend on wheels for the automotive sector. Leading the Cac 40 at midday, the manufacturer Renault climbed 6%, followed by Michelin (+3,1%). Stellaris gains, for its part, 2%, when, apart from the flagship index, Faurecia et Valeo both take 4%. This enthusiasm for the automobile compartment is explained by a note from Bank of America Securities, which judges the current concerns of the market ” exaggerated “. For analyst Horst Schneider, the valuation of the sector implies that a ” exogenous shock is about to happen, such as the potential permanent shutdown of Russian gas to Europe. In the event of a cut, automobile production could be halted for several quarters, but a resumption of flows would be accompanied by a major rally in the sector during the earnings season which is beginning. In the event of a drop in volumes, if selling prices remain at their current level, “ the sector could live with it continues BofA Securities, highlighting the recent decline in metal prices.
For his part, Mathieu Rachet, head of equity strategy at Julius Baer, believes that the market is interested in securities from the automotive sector because of their attractive valuation, as may be the case for other compartments. ” A moderate recession could be cushioned by the high order book and pent-up demand from customers, adds the expert, who notes that equipment manufacturers are expecting an improvement on the component supply front during the second half of the year.
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