Auto Electronics Poised for Growth – Analyst Blog
Source: http://www.zacks.com/stock/news/22881/Auto+Electronics+Poised+for+Growth+-+Analyst+BlogPosted on Tuesday, July 28th, 2009 | In Market Commentary, Stocks to Watch
A recent iSuppli report painted a brighter picture for the auto industry, and the electronics segment of the industry in particular. Auto sales are expected to increase in the second half of the year, growing up to 5.7% in 2010. Electronic components, such as audio head units, personal navigation devices (PNDs), advanced driver assistance systems (ADAS), embedded telematics systems and Bluetooth are expected to benefit.
This should be good news for companies like SRS Labs (SRSL), Techwell (TWLL), Garmin (GRMN) and TomTom.
SRS management stated that its auto business fared better than the overall auto industry in the first quarter. The company’s customers in the auto market are Panasonic (PC), Kenwood, Pioneer and Fujitsu-Ten.
Comments made by car makers such as Ford (F) that demand for cars incorporating electronics exceeds demand for cars without them further validates this view. Techwell’s video decoding systems are targeted at navigation, entertainment and driver information systems, while Garmin and TomTom are the market leaders in navigation. All these companies are expected to benefit.
Investor sentiment around auto is also improving, with the General Motors bankruptcy ending sooner than expected. iSuppli expects that rebates on new fuel-efficient models under the Fed’s “Cash for Clunkers” program will result in additional sales of 250,000 cars. The program allows a customer to replace his road-ready, less-than-25-year-old, less than 18-miles-per-gallon car bought for less than $45,000. Depending on the new car being bought, the government will offer a rebate of $3,500-$4,500.
Read the full analyst report on “SRSL”
Read the full analyst report on “TWLL”
Read the full analyst report on “GRMN”
Read the full analyst report on “PC”
Read the full analyst report on “F”
Zacks Investment Research
Last 5 posts by Zacks Market Commentaries
- CNP & FPL Ink Pipeline Deal - Analyst Blog - November 20th, 2009
- Buffett Borrows for Rail Acquisition - Analyst Blog - November 20th, 2009
- Stone Energy Outdoes Estimates - Analyst Blog - November 20th, 2009
- Smucker's Beats, Raises Guidance - Analyst Blog - November 20th, 2009
- GameStop Meets Expectations - Analyst Blog - November 20th, 2009
bluetooth;, car makers, cars incorporating electronics, driver assistance systems, driver information systems;, electronics segment, Federal Reserve System, Ford, Fujitsu-Ten, Garmin, General Motors, Kenwood, Market Commentary, Panasonic, personal navigation devices, Pioneer, SRS Labs, Stocks to Watch, Techwell, telematics systems, TomTom, USD, video decoding systems, Zacks Market Commentaries
 About Zacks Market Commentaries (http://www.zacks.com/)
Zacks Market Commentaries |
No recommendations, either expressed or implied, are being made to buy, sell, hold or short any of the mentioned stocks. No legal, tax or accounting advice is expressed or implied. Always contact your attorney, CPA, or tax advisor before acting on any legal or tax issues. StraightStocks.com is not responsible for the content, products, or services of any of the advertisers on this site. StraightStocks.com receives compensation from advertisers on this blog. Services and products referred to herein are trademarks, registered trademarks, servicemarks, and/or registered servicemarks of their respective trademark or servicemark owners.