DPH/VC: Lehman Upgrades Auto Parts Sector, Calling Low Valuations "Absurd" - TheStreet

Lehman Brothers

upgraded the auto parts sector to neutral from underperform, citing the sector's low valuations as "absurd," a recent interest-rate rally and "stirrings" of interest from outside buyers. According to Lehman, the sector's valuation is second-lowest of 104 industry sectors in the

S&P 500 Index

.

Auto components supplier

Delphi

( DPH) was upgraded to a buy from outperform. Lehman started coverage on

Visteon

(VC) - Get Report

with an outperform rating and

ArvinMeritor

( ARM) with a neutral rating. The brokerage maintained buy ratings on a number of other companies, including

Lear

(LEA) - Get Report

and

Borg Warner

(BWA) - Get Report

.