Faurecia: stock up on broker comments
(CercleFinance.com) - Faurecia shares are up 5% today, thanks to a double-upgrade by Jefferies (from "underperform" to "buy"), with analysts raising their target price for the stock by 50% to E24, in its comments on automotive suppliers.
"Operating environment is finally turning supportive of Suppliers and the post-Covid downward earning cycle appears to be coming to an end", the broker says, which would " use any potential disappointment on price compensation to build exposure".
Regarding Faurecia, Jefferies points to operating leverage supporting deleveraging and a repaired balance sheet, once the divestments already announced are completed, reducing the gearing ratio to around two times at the end of 2023.
Copyright (c) 2023 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.