Stifel reaffirms its 'hold' recommendation on Plastic Omnium, seeing 'fewer catalysts on the stock than on its OEM peers', but raises its target price from 19 to 20.5 euros in the wake of an 8% higher 2023-24 EPS sequence.

FCF for 2023 should prove robust (underlying at around +300 million euros in our opinion), and subsequent debt reduction will be further helped by a favorable windfall of 54 million euros (disposal of real estate assets)", he believes.

The broker appreciates 'management's transparency on the 'PO Lighting' roadmap, according to which revenues may plunge next year, but profits may not erode compared with 2023, helped by ongoing efficiency gains'.

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