MARKET TALK: UBS Cuts European Autos To Underweight

2nd Aug 2010 07:54

0654 GMT [Dow Jones] UBS downgrades its view on European auto sector to underweight from neutral. The sector has been the best performing one since the recent peak, while earnings momentum is at an 8-year high and may have peaked, says UBS. Valuations are no longer attractive says UBS and economic lead indicators are rolling over. It upgrades the insurance sector to neutral from a small underweight, saying the sector has underperformed year to date and over the last five years. It says earnings momentum is at a 20-year low and looks to be turning at a time. UBS says its current preferred stocks are Prudential (PRU.LN) and Allianz (ALV.XE) and it removes Peugeot (UG.FR) from its European Key Call list to reflect the more cautious sector stance. ([email protected]) Contact us in London. +44-20-7842-9464 [email protected] (END) Dow Jones Newswires August 02, 2010 02:54 ET (06:54 GMT)