Bank of America Securities boosts the automotive sector

Weekend on wheels for the automotive sector. Leading the Cac 40 at midday, the manufacturer Renault climbed 6%, followed by Michelin (+3.1%). Stellantis gains, for its part, 2%, when, apart from the flagship index, Faurecia and 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.