Faurecia: Oddo's best sector pick
(CercleFinance.com) - In a report issued this morning, Oddo BHF analysts wonder about whether it's time to reconsider the stockmarket status of automotive suppliers.
Indeed, Faurecia, one of the three main French sector players, alongside Valeo and Plastic Omnium, is traditionally classified as a "cyclical industrial" stock. However, above all it is all a growth stock, whose technological dimension deserves to be appreciated for its worth.
Oddo BHF points out that while the three aforementioned stocks, in Q1 2018, a period that was subject to a difficult comparison basis, outperformed their market, Faurecia stood out, outperforming by 800 basis points: this largely outperforms Plastic Omnium (400 points) and Valeo (200 points).
Another interesting point put forward by Oddo BHF analysts is the increasingly technological nature of these companies. Increasing innovation is transforming OEMs into technology stocks in order to participate in the development of autonomous, connected and electric vehicles, the note says. Some of Faurecia's recent acquisitions (part of Parrot, Coagent, the partnership with ZF, Mahle) also back this opinion.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
Indeed, Faurecia, one of the three main French sector players, alongside Valeo and Plastic Omnium, is traditionally classified as a "cyclical industrial" stock. However, above all it is all a growth stock, whose technological dimension deserves to be appreciated for its worth.
Oddo BHF points out that while the three aforementioned stocks, in Q1 2018, a period that was subject to a difficult comparison basis, outperformed their market, Faurecia stood out, outperforming by 800 basis points: this largely outperforms Plastic Omnium (400 points) and Valeo (200 points).
Another interesting point put forward by Oddo BHF analysts is the increasingly technological nature of these companies. Increasing innovation is transforming OEMs into technology stocks in order to participate in the development of autonomous, connected and electric vehicles, the note says. Some of Faurecia's recent acquisitions (part of Parrot, Coagent, the partnership with ZF, Mahle) also back this opinion.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.