7 February 2019 EQUITIES Global Auto Top Picks AUTOS HSBC Top 10 Buys in Global Autos in 2019 Global Leveraging the expertise of HSBC’s auto analysts across six Horst Schneider* markets, this report features our Top 10 Buy ideas for 2019 Global Head of Automotive Research HSBC Trinkaus & Burkhardt AG
[email protected] Global Autos has re-rated 9% YTD on earnings cuts but also +49 211 910 3285 with genuinely improved sentiment – which could be premature Henning Cosman* Analyst HSBC Bank plc Relief really could be short-lived: with negative global volumes in
[email protected] H1 2019e and cyclical/structural risks, stock picking is key +44 20 7991 0369 Giulio Pescatore*, CFA Analyst Top 10 Buys from Europe, Asia and selected EMs HSBC Trinkaus & Burkhardt AG
[email protected] For the first time, we present our top ideas within HSBC’s Global Autos coverage, +49 211 910 3018 spanning Europe, Asia and Emerging Markets. We include carmakers and suppliers with Pushkar Narendra Tendolkar* high implied upside to our target prices and tangible catalysts, selecting 10 companies Associate Bangalore with self-help potential, structural tailwinds, defensive characteristics and attractive valuations – our relative preference in this difficult environment for global Autos. * Employed by a non-US affiliate of HSBC Securities (USA) Inc, and is not registered/ qualified pursuant to FINRA regulations EMEA – Ferrari, Michelin, Renault and Ford Otosan: In Europe we like the defensive characteristics of Ferrari (p42) and Michelin (p46), and the attractive valuation of Renault (p50). In Turkey, despite the difficult domestic market conditions, we see Ford Otosan (p68) as a long-term sustainable export growth story at an attractive valuation.