1047 GMT - Fewer regulatory rules, particularly on carbon-dioxide emissions, will give the auto industry much-needed flexibility, Bank of America analysts write. The U.S. is already leading this trend and could even remove carbon-dioxide regulations entirely, they say. Europe won't go that far but is likely to postpone the ban on combustion-engine vehicles beyond 2040, the bank adds. "We believe the cheapest stocks will benefit most from regulatory easing, but ultimately, the discounted cash flow outlook for all automakers--from Renault to Ferrari--will improve." The bank upgrades its ratings on Renault and Porsche SE stock to buy from neutral on valuation grounds, and Mercedes-Benz to neutral from underperform. Shares in Porsche SE, Volkswagen, BMW, Mercedes-Benz, Ferrari, Renault, Volvo Car and Porsche AG all rise between 3.5% and 5%. (dominic.chopping@wsj.com)
(END) Dow Jones Newswires
December 04, 2025 05:47 ET (10:47 GMT)
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