Valeo: Oddo BHF still on hold after results

(CercleFinance.com) - Oddo BHF maintains its 'neutral' rating on Valeo shares with an unchanged target price of E10 (cp E9.
5, -9%).

Last night, Valeo published quarterly sales of E4967m, down 5% on a reported basis and 3% below expectations.

In this context, the automotive supplier has reduced its full-year sales target (-3% vs. consensus; E21.3bn, vs. E22bn), citing an increasingly difficult environment, while maintaining its OM and FCF targets.

Sentiment around automotive suppliers, which has been very negative since the start of the year (Valeo -25% YTD), which has improved since the start of the results season in the absence of (further) bad news, but this publication and the much more cautious message from management should dampen investors' spirits, Oddo BHF says.

The broker points to the CEO's very cautious tone regarding the company's 2025 outlook, in sharp contrast to the fairly confident message of recent weeks.


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