With aluminum prices up ~50% over the last year, and consensus expectations of ATH gross margins in 2026/27e, we see a risk of negative earnings momentum ahead, and downgrade AUTO to Hold (Buy). While we argue AUTO’s competitive position will result in price-hikes offsetting the higher costs, we believe higher rates and inflation among customers increase the risk of demand destruction in such a scenario, potentially hurting order intake. The situation has some similarities to 2022, when gross ma ....
