Faurecia: Invest Securities raises target price
(CercleFinance.com) - Invest Securities reiterates its "buy" rating on the Faurecia stock, which remains a best pick, having raised its corresponding target price from 48 euros to 54 euros, considering that the flow-back risk seems largely overplayed.
The broker points out that since it published its interim results at the end of July, the Faurecia share rose by 25%, peaking at 43.4 euros, although that this movement has been broken abruptly by amendments to the terms of the Stellantis transaction.
However, analysts stress that Faurecia's “spin-off” has only been delayed by two to three months, that its comments on business in the third quarter of 2020 seem reassuring, even though August was weak in Europe, and that it is trading at a 2022 P/E of just 5.2x.
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