European Auto Stocks – Fundamentals? Not Good, But Thankfully They Are "Blessed" By ECB: Deutsche Bank

Looking at the internal corporate numbers for European auto manufacturers, 2016 was a reasonably positive year. Used car availability was generally low, resulting in relatively more attractive new car values. In the US truck and SUV sales held up overall industry numbers to respectable levels and earnings projections generally held steady. The Chinese market was looking generally robust, particularly for premium vehicles, and even European new car registrations provided a positive surprise while Brexit impact “was limited and the UK market held up relatively well.” So why did European auto stocks struggle, trading below historic averages? Deutsche Bank’s European-based automotive analysts see Terminal Value threatened by disruptive headwinds, which have impacted flat to negative stock prices in the...