Pole Position "UBS European & US Autos Daily" Hummel

研报英文原文证据摘录

Pole Position "UBS European & US Autos Daily" Hummel

of these

business and 2) interest in seeking cyclical torque and think auto screens well (we've

argued that autos fit de-escalation trade intersecting on being beneficiaries from both

lower oil and potential rate cuts). One final thing to consider: we get the sense that

companies are going to use earnings calls as the opportunity to update the market on

these future opportunities. That could detract the focus on those calls from the

performance of the business over the past 3 months (misses/beats) and/or over the

coming 6 months (2026 guidance). This makes the earnings reaction game much more

difficult, in our view, since announcements could outweigh results/guidance.

How are investors thinking about it? We think our tiered framework works

well.

•Tier 1: Names where companies are solving for a customer pain point or shortage. That

is not to say there isn't work to be done and standards/qualifications that need to be met

(true for all tiers), but auto names already have to meet difficult and robust standards

and make product for harsh environments. The names in this tier are BWA (where the

case is arguably the strongest) and F. Power generation is in short supply with turbine

backlogs extending years out. BWA’s micro-turbine (TurboCell) product will have 2GW

of initial capacity, so availability is key, and strong demand could lead to capacity

expansions. The CEO has commented that a capacity expansion decision could occur

late 26/early 27. From our conference, we believe the company wants to get UL

certification first and measure throughput of the production line before making a

decision. Beyond power gen, at our conference, the company indicated that they are