Valeo: BofA upgrades stock

(CercleFinance.com) - On Thursday, Bank of America upgraded on Valeo shares from 'neutral' to 'buy', with a target price raised from E12 to E14, believing that the automotive supplier was successfully turning its business around.


The company's financial performance is aligning with its commercial successes, and the quality of its results is at an 'inflection point, it says.

The analyst believes that cost-cutting measures, reduced R&D spending and better contract negotiation should also lead to margin appreciation between now and 2025.

BofA also points out that the stock is currently trading 30% below its historical valuation levels.


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