Delphi Jumps on Fading Brexit Worries, Automated Driving Buzz
Delphi Automotive Plc rose the most in two months as concern that the U.K. will leave the European Union eased and after an RBC analyst said the auto-parts supplier is “well aligned” for automated driving.
The shares climbed 4.9% to $69.75 at 1:07 p.m. in New York after gaining as much as 5.1%, the most intraday since April 13. The stock is headed for its fourth straight daily gain.
Delphi, the former parts unit of General Motors and a supplier to GM, Volkswagen AG and Ford Motor Co., is based in Gillingham, U.K., with much of its operations run out of Troy, Michigan. Global stocks rallied and the British pound on Monday strengthened the most since 2008 amid signs that the campaign for the U.K. to stay in the EU was gaining momentum before this week’s referendum.
RBC analyst Joseph Spak in a note Sunday reiterated an outperform rating on Delphi shares, citing the company’s strategy in autonomous vehicles presented during a meeting at the supplier’s Silicon Valley lab. Spak wrote that Delphi is “well aligned” with three important automotive themes: “safe, green, and connected.”
Other auto-parts makers also rose Monday as the broader U.S. market climbed. BorgWarner Inc., a drivetrain supplier that gets about 45% of its revenue from Europe, gained as much as 5% to $35.15. American Axle & Manufacturing Holdings Inc. was up as much as 4.2% to $16.74 and Harman International Industries Inc. increased as much as 4.3% to $78.45.
