(Boursier.com) — Still buoyed by its very good half-yearly publication, Akwel rose 2.9% to 15.8 euros this weekend in Paris. The group has also once again raised its outlook for 2023 and is now targeting “progression in operating profitability over the entire 2023 financial year” in addition to growth in turnover of +10%.
Despite favorable short-term momentum (share buybacks, solid publications and estimate increases), TP ICAP Midcapt remains to ‘keep’ on the file while past the sweet spot of 2023, leading indicators (order books, promotions ) point to a deterioration in European automobile demand; historical double-digit profitability standards will remain out of reach in the medium term due to the group’s necessary adaptation to the accelerated electrification of the European automobile fleet (duplicate product lines, EV products less differentiated than for thermal); finally, Akwel’s European industrial footprint makes the group particularly sensitive to structural pressure on volumes in the region where the peak of automobile demand has been exceeded and which tends to become increasingly competitive (notably from manufacturers importing their production from Asia). The objective is raised from 15 to 17 euros.
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