Faurecia: Bryan Garnier still upbeat
(CercleFinance.com) - The Faurecia share remains one of Bryan Garnier's favourite stocks ("top picks") for its "Smart industries" selection, i.
e. cyclical and/or industrial stocks that are driven by heavy trends and technological disruptions.
Maintaining its buy rating, analysts have a target price of 72 euros for the share.
Indeed, Donald Trump's angry tweets against US auto imports from Europe and protectionist measures have recently weighed on the sector in the stockmarket.
However, analysts are confident about the organic growth that Faurecia will report on 20 July when it publishes its interim sales. Its momentum should outperform those of Valeo and Plastic Omnium, reaching a rate of at least 7% in the second quarter (including Chinese joint ventures). Likewise, its operating margin should exceed 7%.
Finally, “Faurecia is today the cheapest automotive supplier within our coverage with PEG of 0.7x for 2018 and 0.6x for 2019 vs. respectively 1x and 0.9x for the subsector.”
Copyright (c) 2018 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.
e. cyclical and/or industrial stocks that are driven by heavy trends and technological disruptions.
Maintaining its buy rating, analysts have a target price of 72 euros for the share.
Indeed, Donald Trump's angry tweets against US auto imports from Europe and protectionist measures have recently weighed on the sector in the stockmarket.
However, analysts are confident about the organic growth that Faurecia will report on 20 July when it publishes its interim sales. Its momentum should outperform those of Valeo and Plastic Omnium, reaching a rate of at least 7% in the second quarter (including Chinese joint ventures). Likewise, its operating margin should exceed 7%.
Finally, “Faurecia is today the cheapest automotive supplier within our coverage with PEG of 0.7x for 2018 and 0.6x for 2019 vs. respectively 1x and 0.9x for the subsector.”
Copyright (c) 2018 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.