Jaguar Land Rover : Jaguar falters as the electric transition approaches

JLR was recently hit by a cyberattack, further exacerbating an increasingly pressured business environment. The manufacturer is facing mounting structural challenges (tariffs, Chinese weakness, rising costs, weaker demand, etc.) as it prepares to launch three fully electric vehicles in 2026. We are downgrading our operating margin forecasts and do not believe that JLR will be able to return to a net cash position over the next 24 months. Ratings, particularly at S&P, are now at risk. We are moving to Reduce on the 2028 bonds, pending new issues in the coming months, which we hope will offer a premium in light of the new uncertainties.