autopartswarehouse

Analyst’s Judgment Triggers Increase in Sales of Auto Parts Dealers

The sales of some auto parts dealers recently went up as a result of the coverage of analyst Itay Michaeli’s  review of the auto parts industry.

On a recent coverage, Michaeli stated that the most excellent companies in the auto parts sector enjoy global grip of development, constructive flow of cash, levelheaded liability control, smart appraisals and properly managed range of products.

Michaeli’s statement caused a significant increase in the sales of certain auto parts suppliers. Michaeli's top pick Lear had shares that soared from 1.59 dollars to 29.67 dollars in noontime trade.  After being chosen by Michaeli as among the leading auto suppliers, Goodyear Tire & Rubber Co., BorgWarner Inc., and Magna International Inc. also experienced a considerable boost in their shares.  The share of Magna increased to 2.16 dollars, and BorgWarner’s share went up to 1.73 dollars.

Moreover, Michaeli mentioned that BorgWarner is a wiser investment when it comes to the manufacture of emission products.  "Despite Tenneco's meaningful leverage to growing diesel volumes and tightening emissions standard, we see a number of setbacks in the story including limited potential for operating leverage to generate strong margin performance, EBITDA growth too weak to support a deleveraging thesis and an unattractive valuation," explained Michaeli in a news report by boston.com.

Even as the highly respected analyst anticipates a continuous decline in U.S. auto sales throughout 2008, the international auto parts market is estimated to expand by three percent annually due to the greater demands from Eastern Europe and Asia.

According to Michaeli, the triumph of automobile manufacturers and suppliers in the future will be based on how they create positive image in the tough and continually increasing markets and strengthen their positions in full-grown markets.