Faurecia: Invest Securities still a buyer, but cuts target
(CercleFinance.com) - Invest Securities réaffirme son opinion "achat" sur Faurecia avec un objectif de cours ajusté de 62 à 60 euros, au lendemain d'un chiffre d'affaires trimestriel en ligne avec le consensus et les attentes du bureau d'études.
Invest Securities reinstates its "buy" rating on the Faurecia share, while shaving a fraction off its target price, which is no 60 euros (vs. 62 euros previously), after the group reported quarterly sales that are in line with the consensus and the broker's estimates.
The analyst notes that Faurecia has confirmed its guidance for 2019, despite an automotive market that is now expected to fall by 6% in 2019, against a 4% drop previously. He therefore trims his EPS estimates after the integration of the joint venture SAS in its 2020 and 2021 estimates.
Trading at a 2019/20/21e P/E of 7x/6x/5.1x, the broker reiterates its buy rating on the share, confirming that Faurecia is safeguarding the levels of its operating profitability and FCF in 2019. The broker adds that it will revise and fine-tune its long-term scenario after the CMD scheduled for 26 November.
Copyright (c) 2019 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.
Invest Securities reinstates its "buy" rating on the Faurecia share, while shaving a fraction off its target price, which is no 60 euros (vs. 62 euros previously), after the group reported quarterly sales that are in line with the consensus and the broker's estimates.
The analyst notes that Faurecia has confirmed its guidance for 2019, despite an automotive market that is now expected to fall by 6% in 2019, against a 4% drop previously. He therefore trims his EPS estimates after the integration of the joint venture SAS in its 2020 and 2021 estimates.
Trading at a 2019/20/21e P/E of 7x/6x/5.1x, the broker reiterates its buy rating on the share, confirming that Faurecia is safeguarding the levels of its operating profitability and FCF in 2019. The broker adds that it will revise and fine-tune its long-term scenario after the CMD scheduled for 26 November.
Copyright (c) 2019 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.