Valeo: Berenberg still a buyer, trims target price

(CercleFinance.com) - On Wednesday Berenberg reduced its target price for Valeo share from 35 euros to 34 euros, while maintaining a buy rating on it.


In comments on the European automotive sector, the German broker explains that the French equipment manufacturer has come back on the radar, following its recent depreciation in the stockmarket.

Berenberg points out that its shares have underperformed the automotive equipment segment since the beginning of the year, which analysts explain is largely due to the group's high exposure to the semiconductor market.

According to the broker, Valeo's discount is now unjustified given the group's solid growth profile and improved margins.

Berenberg adds that another item behind its optimism towards the group is its sound momentum on the EV segment.



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