- Goldman Sachs thinks a China pullback is already priced into many auto stocks, apparently factoring a 40% decline in revenue outside of North America vs. the its outlook for a 2% drop; as a result, the firm upgrades Johnson Controls (NYSE:JCI) and Tenneco (NYSE:TEN).
- JCI is raised to Buy from Neutral with a $60 price target, as Goldman thinks the company should see positive share movement from incremental backlog and orders in its building efficiency business and a potential boost from the recently announced automotive business spinoff.
- TEN is lifted to Neutral from Sell with a $60 target, as Goldman expects a long-term benefit from increased penetration of gasoline direct injection which requires gasoline particulate filters, an area where TEN can leverage its diesel particulate filter expertise.