JaguarLandRover - limited upside from current levels

All,

Please find our updated model here.

We are unwinding our long short position in Jaguar LandRover, removing our 5% NAV long in Jan-26's and short 3.3% of NAV in Feb '23 bonds. We entered this trade when the '26’s were in the mid-'60s and although we remain cautiously positive on the credit, there is limited upside in the current environment.

Jaguar LandRover has sufficient liquidity, with good momentum from new product launches which will underpin performance over the coming quarters, but the risks of further Covid restrictions coupled with potential Brexit trade barriers leads us to unwind this bullish trade.

The Company has an investor day on 2nd December with the next set of results not due until the end of January. We will continue to monitor the name over the coming weeks and months and will look to take advantage of any sustained weakness in the name. In the coming days, we will spend more time on the potential fines for Jaguar LandRover missing the emission targets and what level of electric vehicle sales would be required going forward to meet the EU emissions target.

Tomás
___________________
E: tmannion@sarria.co.uk
T: +44 20 3744 7009

M:+44 7786 705 806
www.sarria.co.uk