Analysts think auto stocks are underrated

Munich, Dusseldorf The environment for shares in VW, BMW and Mercedes looks bleak. The automotive industry lacks semiconductors and batteries. Added to this is high inflation and rising interest rates, and Germany is on the brink of recession. War is raging in Europe, the tone between the West and China is becoming sharper.

“Anyone who only looks at the auto industry from a macro perspective sees a major crisis brewing,” explains Jürgen Pieper, an analyst at Bankhaus Metzler. On closer inspection, however, many risk factors would be put into perspective. “The auto industry is more alive than ever. Profits are at a record level and there will be no recession in the sector in 2023 either,” states the capital market expert.