Faurecia: Bernstein starts coverage with underperform rating
(CercleFinance.com) - Bernstein initiates its coverage of the Faurecia stock with an "underperform" rating and a target price of 30 euros, particularly highlighting the automotive supplier's exposure to its seats business.
"Faurecia operates in a tough industry where profitability has historically proven challenging - particularly in seating (>40% of revenues) and interiors (30%),” says the analyst, pointing out "Seating is hugely vulnerable to OEM pricing pressure".
Although it recognises that Faurecia "has already de-rated and it's not expensive," the broker believes that "earnings will disappoint," announcing 2020 estimates that are 13% below the consensus.
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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.
"Faurecia operates in a tough industry where profitability has historically proven challenging - particularly in seating (>40% of revenues) and interiors (30%),” says the analyst, pointing out "Seating is hugely vulnerable to OEM pricing pressure".
Although it recognises that Faurecia "has already de-rated and it's not expensive," the broker believes that "earnings will disappoint," announcing 2020 estimates that are 13% below the consensus.
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.