Faurecia: Oddo maintains rating after quarterly results

(CercleFinance.com) - Oddo maintains its (short-term) Neutral rating on the Faurecia stock, along with a target price of 60 euros.


The broker believes Q4 will remain difficult - especially for Faurecia, due to an unfavourable comparison basis (tools/prototypes), expectations seem high in 2019, which Oddo says leave no room for upgrades (Oddo's EPS estimate is 6% less than the consensus) and the current momentum, as confirmed yesterday, does not suggest that there could be a sustainable rerating in the near term.

The group's CFO said that the final definitive programs received by car makers in Europe (visibility until the end of November) were in line with IHS's Q4 forecast (-1%), that production in China should sequentially rebound after a decline in Q3 (+2% vs. -5%) and, that overall, he was comfortable with the current consensus for 2018 (in line with the guidance), Oddo explained.

However, it was still too early for management to be precise about its outlook for 2019 (beyond the confirmation of internal improvement factors) and it is probably on this topic that investors' concerns are now focusing, the broker added.



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