Tenneco shares rise on investor optimism

Tenneco gets boost from predictions of vehicle production growth, tighter emissions standards

• On 12:56 pm EDT, Friday October 23, 2009

NEW YORK (AP) -- Shares of Tenneco Inc. rose Friday on expectations that the auto parts supplier's sales will benefit from increased vehicle production and tightening emissions standards for light and commercial vehicles across the globe.

In midday trading, Tenneco shares rose 54 cents, or 3.4 percent, to $16.52 after peaking at $17.38 earlier in the day.

Christopher J. Ceraso, an analyst for Credit Suisse, raised his rating for the company, which makes emissions and ride control products, to "Outperform" from "Neutral" citing its attractive stock price compared to those of other auto suppliers and its profit potential.

Ceraso said Tenneco could post a third-quarter profit of 15 cents per share, well ahead of average analysts' estimates of 3 cents per share.

"Longer term, catalysts include the launch of business associated with emission regulations in China and the U.S. (mid-2010), and the potential re-issuance of revenue guidance, which could reinforce the long-term secular growth story in emission controls," Ceraso wrote in a note to investors.