Deutsche Bank Has Thoughts On Paris Auto Show (JCI)

Deutsche Bank has some thoughts on the automotive sector, and in particular, BorgWarner Inc. BWA. It rates shares of BorgWarner Inc. a Buy with a $49 price target. In the research report, Deutsche Bank writes, "Most European automakers expect European Auto Demand to improve modestly in 2011 vs. 2010. Germany is the largest market within Western Europe, and many believe that this market could recover more impressively than is widely anticipated. The UK market has fallen off sharply in September (media discussions about austerity measures are dampening consumer confidence), and is likely to decline in 2011 vs. 2010. Pricing for high end/luxury vehicles has been relatively strong in Europe this year. Pricing in the mass market has been somewhat weaker… particularly in Germany, where Volkswagen has taken a more aggressive tack. Autoliv and BorgWarner both indicated potential upside to their current guidance based on stronger than expected Europe production." Shares of BorgWarner gained $1.36 yesterday to close at $51.72, a gain of 2.7%.