Faurecia: remains Oddo's best pick in its sector
(CercleFinance.com) - Faurecia announced this morning that it has reached an agreement to acquire 100% of Hug Engineering, a Swiss company with complete exhaust gas purification systems for engines of over 750 hp from of the German group ElringKlinger.
Oddo believes that this acquisition is completely in line with the group's strategy at its Clean Mobility division, presented at its CMD at the end of June this year. Following this announcement, the broker's analysts confirm their rating on the stock, along with their target price of 68 euros.
"Faurecia continues to be one of our favorite values in the Automotive OEM sector, and this is despite the stock's outstanding performance (+82% y-t-d); its valuation remains attractive, trading at a 2018 EV/Ebit multiple of 8x, with an (unjustified) average discount of 15%." Oddo points out in its daily research report.
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