Valeo: Jefferies cuts target price further

(CercleFinance.com) - While repeating its "hold" rating, Jefferies has again cut its target price for the Valeo share, this time from 32 euros to 27 euros, the day after the auto parts maker's trading update.


"Revised guidance points to significant deterioration of growth, margins and FCF for 2H '18, but more importantly, implies significant downgrades to 2019-21 estimates," the broker warns.

"Faith in Valeo's order book and margin resilience will be questioned by investors," it continues, adding that the consolidation of the group's joint venture with Siemens could begin to weigh on the group's multiples and balance sheet.

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