Auto Parts Industry Riding the 'Upgrade' Wave, Says Rothman Research - aftermarketNews

Auto Parts Industry Riding the ‘Upgrade’ Wave, Says Rothman Research

Last week, Moody's raised its outlook for the U.S. auto parts suppliers to "positive," citing surging demand for auto parts as vehicle sales go up.

JOHANNESBURG, South Africa — The U.S. automobile industry has experienced some of the most dramatic restructuring imaginable. Nonetheless, recovery in this industry has been remarkable, with automakers seeing sales improvement in the early months of 2010, according to Rothman Research.

With automakers once again on the go, the natural trend is for auto parts suppliers to follow suit. Last week, Moody’s raised its outlook for the U.S. auto parts suppliers to "positive," citing surging demand for auto parts as vehicles sales go up.

Morgan Stanley took the same initiative this week, lifting the industry’s outlook to "attractive" and in the process the analyst upgraded two of the industry’s players, Johnson Controls Inc. and TRW Automotive Holdings Corp.

BorgWarner Inc. also got its rating upgraded from "hold" to "buy" by UBS. UBS stated that BorgWarner’s unique positioning in the auto parts industry could result in the company’s organic growth to radically exceed that of the industry.

The auto parts industry is now forging ahead as U.S. auto market improves. Now with the world’s biggest auto market located in the Far East, the auto part suppliers in the U.S. will be looking forward for growth, says Rothman Research.

Free downloadable research reports on Johnson Controls Inc. and BorgWarner Inc. are available from Rothman Research by signing up at http://www.rothmanresearch.com/article/jci/23592/Jun-17-2010.html or http://www.rothmanresearch.com/article/bwa/23593/Jun-17-2010.html

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