On Monday, HSBC reiterated its buy recommendation on Forvia, albeit with a downwardly revised price target, from €24 to €21.

In a research note, the broker stresses that synergies should drive the automotive supplier's profitability, alongside other internal measures, such as the closure of the Michigan-based plant.

The British broker thus expects Forvia to grow its operating income by more than 15% in 2024, as in 2025.

While noting that the group remains sensitive to changes in interest rates, HSBC says it expects its financial costs to stabilize in 2024, before declining in 2025, while the announcement of further asset disposals could, in its view, provide some pleasant surprises.

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