Valeo: Barclays 'underweight' maintained; cuts target
(CercleFinance.com) - Barclays maintains its "underweight" rating on the Valeo share and has trimmed its corresponding target price from 23 euros to 22 euros, in the wake of reduced sales forecasts for the automotive sector, given the slowdown in China, Europe and the US.
Given recent demand trends that are weaker than expected, the broker has cut its sales volume assumptions for China in 2019 (-4.5%, instead of -2.5% previously) and 2020 (+3.5%, instead of +5%).
Likewise, Barclays has reduced its estimates for Europe, now anticipating a slowdown of 0.3% this year, followed by 0.9% next year. Regarding the US, the broker still forecasts a 2.1% decline in 2019, and now expects this to be followed by a decline of 1% in 2020.
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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.
Given recent demand trends that are weaker than expected, the broker has cut its sales volume assumptions for China in 2019 (-4.5%, instead of -2.5% previously) and 2020 (+3.5%, instead of +5%).
Likewise, Barclays has reduced its estimates for Europe, now anticipating a slowdown of 0.3% this year, followed by 0.9% next year. Regarding the US, the broker still forecasts a 2.1% decline in 2019, and now expects this to be followed by a decline of 1% in 2020.
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.