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Analysts at Bank of America have picked three global auto parts firms that they say are trading at a discount and are likely to shake off competition from newer electric vehicle suppliers.
Auto suppliers that make components for regular combustion engine cars are shaping up well to the challenge of making parts for EVs — and far from being disrupted by new firms, they have a “sizeable advantage” due to their scale and relationships with auto manufacturers, the bank’s analysts said.
BofA picked three global stocks ahead of a “strong” earnings season, assets that are trading at an average 12% discount to U.S. peers — and they also have higher dividend yields, analysts said in a research note published Monday.
Its picks are: