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Peugeot's (OTCPK:PEUGY) share price has rallied 27% over the last 3 months, despite a series of setbacks. The automaker recently warned that losses this year could top 2 billion Euros due to falling volumes, especially in the higher margin product lines. The outlook is further clouded by the possible phasing out of the car scrappage schemes which have so far provided tacit Government support to automakers.

Peugeot is looking to developing economies to take up the slack, entering the Indian market before the end of the year, and it is tapping the convertible bond market to reduce debt costs.

Much of the bad news appears to be in the prices - according to Factset data, analysts have become much more positive on the global auto sector in the past 3 months. Ranked according to positive changes in analyst recommendations, autos are in the top 4 in Europe, UK and the US.

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Source: Peugeot's Downside Appears Priced In