2008-06-17 01:45:33 -
- Zacks Equity Research releases the latest Analyst Interview. Today's interview is with senior analyst Paul Raman, who discusses Cooper Tire & Rubber Company (NYSE: CTB), Sonic Automotive (NYSE: SAH) and ArvinMeritor (NYSE: ARM).
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Here is an
excerpt from the interview:
Have you issued any recent reports on suppliers to the auto industry?
Yes, we just finished a small-cap report on Cooper Tire & Rubber Company (NYSE: CTB), which specializes in the manufacture and marketing of automotive products. A challenging North American auto environment makes us rate the stock a Sell with a six-month target price of $7.00.
The company has 67 manufacturing, sales, distribution, technical and design facilities located around the world. Cooper is the fifth-largest tire manufacturer in North America and the ninth-largest tire company in the world, with a 7% and 2% market share, respectively. The company has a 15% market share in the light-vehicle replacement tire market in the U.S.
What other types of companies are being affected by the sluggish auto industry?
Sonic Automotive (NYSE: SAH) is a large automotive retailer that is heavily exposed to an industry experiencing increasing competition and lower car sales. Thus, we rate the stock a Sell with a six-month target price of $13.00.
Can you tell us of any auto suppliers with some recent good news?
ArvinMeritor (NYSE: ARM) has developed a leading position in most of the markets it serves. Presently, the company is planning to split itself into two pieces. The company is undergoing dramatic cost reductions as well as implementing an impressive global growth strategy. The company is also expanding geographically and outsourcing to low-cost countries. This leads us to rate the shares a Buy with a target price of $20.00.
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