Valeo: UBS maintains buy rating after results
(CercleFinance.com) - UBS confirms its buy rating on the share of French automotive supplier Valeo after the group's publication of its annual accounts.
The broker maintains its 12-month target price at 35 euros, which means upside potential of 25%.
Analysts say that sales and operating income (excluding joint ventures) recorded in Q4 are in line with the consensus. "Valeo outperformed Q4 global production by 2pts," UBS says. Free cash flow exceeded estimates, as does the proposed dividend - stable at 1.25 euros - which is 14% above estimates.
The report also notes that this year Valeo expects to take orders of between 24 billion and 25 billion euros, "with better profitability". The report adds, "China market no longer deteriorating" and "Raw mat trends improving".
However, management's forecasts provided for 2019 imply that the current consensus should start declining, the report says.
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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.
The broker maintains its 12-month target price at 35 euros, which means upside potential of 25%.
Analysts say that sales and operating income (excluding joint ventures) recorded in Q4 are in line with the consensus. "Valeo outperformed Q4 global production by 2pts," UBS says. Free cash flow exceeded estimates, as does the proposed dividend - stable at 1.25 euros - which is 14% above estimates.
The report also notes that this year Valeo expects to take orders of between 24 billion and 25 billion euros, "with better profitability". The report adds, "China market no longer deteriorating" and "Raw mat trends improving".
However, management's forecasts provided for 2019 imply that the current consensus should start declining, the report says.
Copyright (c) 2019 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.