US autos, parts makers post gains after JP Morgan upgrade

Shares of prominent US auto makers and car parts manufacturers were mostly higher in early afternoon trade, after JP Morgan auto analyst David Bradley upgraded the sector to a 'market weight' rating, dealers said.

At 1.58 pm, Visteon Corp was up 5 cents at $15.85, Delphi Automotive Systems Inc up 40 cents at $15.48, Goodyear Tire & Rubber Inc up 68 cents at $24.47, General Motors Corp up 59 cents at $59.39, Ford Motor Co up 7 cents at $16.12, and DaimlerChrysler AG up $1.51 at 46.92.

However, TRW was down 4 cents at $51.11.

The DJIA was up 94.11 points at 10,375.78, and the Nasdaq composite up 12.81 at 1,825.30.

The broader market was lifted by a very strong reading of the latest monthly Consumer Confidence survey.

Bradley said he raised his rating on the autos and parts maker sector due to new estimates that the industry will have earnings growth of 60% over the next two years from the historically low levels of 2001.

He also cited new projections that full-year industry-wide US light vehicles production will be 16.5 million vehicles.

Prior estimates were for US light vehicles total production of about 15.6 million units.

Bradley said since late 2001, he had raised his 2002 earnings per share estimates by 37.9% to 80 cents for Delphi, by 9.7% to $3.40 for TRW, and by 70% to $4.25 for GM.

Since late 2001, he also reduced 2002 EPS estimates by 21.9% to 25 cents for Ford, by 28.1% to $1.97 for DaimlerChrysler, and by 57.1% to 30 cents for Visteon.