Bullet points of Analysis-Investors shun European car stocks despite rock bottom valuations
Bullet points of Analysis-Investors shun European car stocks despite rock bottom valuations
- The STOXX 600 Autos and Parts index is among this year's worst performers.
- Analysts predict a 13.6% earnings drop in 2024.
- Investors believe large cost cuts are becoming unavoidable.
- European autos now trade at a near-record 60% discount to the wider market.
- Shares in Volkswagen, BMW, Mercedes-Benz, Renault, and Stellantis have fallen by as much as 29-50% from this year's peaks.
- The STOXX 600 Autos and Parts index is among this year's worst performers.
- Analysts predict a 13.6% earnings drop in 2024.
- Investors believe large cost cuts are becoming unavoidable.
- European autos now trade at a near-record 60% discount to the wider market.
- Shares in Volkswagen, BMW, Mercedes-Benz, Renault, and Stellantis have fallen by as much as 29-50% from this year's peaks.