Valeo: Invest Securities cuts target, maintains buy rating
(CercleFinance.com) - Invest Securities has cut its target price on the Valeo share from 36 euros to 31 euros , while reinstating its "buy" recommendation, given upside potential of +14% after the revision of its 2019/20/21 EPS estimates (-22%, -19% and -22% respectively).
However, the broker warns that the publication of H1 20119 results should be accompanied by a 2019 annual guidance for an EBITA margin (5.8% to 6.5%), that remains penalised by the decline in the automotive markets in the second quarter and Valeo's negative LFL growth.
Due to the continuing decline in global automotive production, particularly in China, the broker has once again reduced its 2019 estimates, while still expecting a rebound from the second half of 2019.
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However, the broker warns that the publication of H1 20119 results should be accompanied by a 2019 annual guidance for an EBITA margin (5.8% to 6.5%), that remains penalised by the decline in the automotive markets in the second quarter and Valeo's negative LFL growth.
Due to the continuing decline in global automotive production, particularly in China, the broker has once again reduced its 2019 estimates, while still expecting a rebound from the second half of 2019.
Copyright (c) 2019 CercleFinance.com. All rights reserved.