Jefferies raises its recommendation on Faurecia directly from 'underperform' to 'buy', with a price target raised by 50% to 24 euros, in a note devoted to automotive equipment manufacturers.

"The operating environment is finally becoming favorable for equipment manufacturers, and the post-Covid cycle of declining revenues seems to be coming to an end", judges the broker, who "would use any potential disappointment on price compensation to increase exposure".

With regard to Faurecia, Jefferies highlights 'operating leverage supporting deleveraging and a repaired balance sheet, once already announced divestments are finalized, reducing gearing to around two times at the end of 2023'.

Copyright (c) 2023 CercleFinance.com. All rights reserved.
The information and analyses published by Cercle Finance are intended solely as a decision-making aid for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.