Forvia: Stifel downgrades stock

(CercleFinance.com) - In a note on French automotive suppliers, Stifel downgrades its recommendations on Valeo and Forvia from 'buy' to 'hold', with target prices reduced from E22 to E11.
3 and E24 to E12 respectively.

According to the broker, current challenges (in addition to the tumult linked to the French legislative elections) could lead to a resetting of targets and prevent any recovery in the two shares, despite their underperformance since the beginning of the year.

Stifel is reducing its 2024-25 EPS estimates by 24% for Valeo and by 13% for Forvia, and applies a greater discount to historic multiples. "Only signals of a sustained top-line acceleration could help these two suppliers shares to pick-up", it says.


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