Continental: AEB should boost earnings, Bernstein says.
(CercleFinance.com) - Potential regulation on automatic emergency braking (AEB) should boost car components makers such as Continental and Valeo, analysts at Bernstein say.
In a research note sent to clients this Wednesday, the broker's analysts explain that regulators have a moral duty to make AEB fitment compulsory after the technology was proven to reduce accidents by over 40% in one study.
AEB fitment will be highly positive for Valeo and Continental, the broker adds.
"We believe AEB will be a 10 billion euros market by 2020/21 and based on current market shares could increase Valeo and Conti revenues by over two billion euros," Bernstein writes in the report.
The broker expects AEB to boost Valeo's EBIT by over 13% and Conti's EBIT by 5%.
Bernstein hence reiterates its positive view ("outperform" rating) on both Valeo and Continental.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
In a research note sent to clients this Wednesday, the broker's analysts explain that regulators have a moral duty to make AEB fitment compulsory after the technology was proven to reduce accidents by over 40% in one study.
AEB fitment will be highly positive for Valeo and Continental, the broker adds.
"We believe AEB will be a 10 billion euros market by 2020/21 and based on current market shares could increase Valeo and Conti revenues by over two billion euros," Bernstein writes in the report.
The broker expects AEB to boost Valeo's EBIT by over 13% and Conti's EBIT by 5%.
Bernstein hence reiterates its positive view ("outperform" rating) on both Valeo and Continental.
Copyright (c) 2017 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.