On Friday, HSBC maintained its buy recommendation on Valeo, while lowering its target price for the stock from 15.5 to 14.5 euros.

In a research note, the British bank points out that the automotive supplier's 2023 annual results came in above forecasts, but cannot help observing a rise in R&D investment, which leads it to question the sustainability of the quality of the Group's financial performance.

Nevertheless, the bank notes that more than half of Valeo's record order book of 35 billion euros comes from the comfort and driver assistance systems (CDA) activity, the company's most profitable business.

For HSBC, this is good news for the company's profit margins, even if the bank wonders whether Valeo is not, in view of this transformation, becoming a software specialist.

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