Peugeot: best pick for Oddo in automobile sector

(CercleFinance.com) - Oddo believes that the group's results underpin its favourable stance towards the PSA share, which remains its favourite amongst car makers (along with FCA).

The broker confirms its buy rating on the share, with a target price of 26 euros (44% upside).

Indeed, beyond the solid 2019 results (OM, FCF, net cash), the group still appears to be the best equipped, particularly thanks to its past efforts on costs, new launches and potential for further cost reductions that remains significant, Oddo says.

The group said that it is completely sure of reaching its CO2 target in 2020, saying that it was already on track over the first two months and that it has excellent visibility on this issue, analysts add.

Oddo also underlines that the group remains confident on its product mix which will benefit from the many recent launches (208, 2008 and Corsa in particular, with a very solid order backlog). In addition, it benefits from the new CMP platform that should enable it to generate significant synergies.


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