Valeo: Barclays downgrades to 'equal weight'
(CercleFinance.com) - On Friday Barclays downgraded its rating on the Valeo stock from "overweight" to "equal weight", while increasing its corresponding target price from 28 euros to 32 euros (current price: 31 euros, -3%).
In a report on the automotive sector, the broker explains that it has revised its investment theory concerning sector specialists.
"While we believe we are entering a multi-year recovery that should drive earnings/cash much higher in the next two to three years, it now appears to us that there is not much fuel left in the tank to make the subsector attractive at current levels," Barclays said.
Regarding Valeo in particular, Barclays refers to "a lack of short-term catalysts and limited upside potential".
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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.
In a report on the automotive sector, the broker explains that it has revised its investment theory concerning sector specialists.
"While we believe we are entering a multi-year recovery that should drive earnings/cash much higher in the next two to three years, it now appears to us that there is not much fuel left in the tank to make the subsector attractive at current levels," Barclays said.
Regarding Valeo in particular, Barclays refers to "a lack of short-term catalysts and limited upside potential".
Copyright (c) 2021 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.