(Boursier.com) — Faurecia point down sharply by 5%, back to 20 euros on Wednesday, while the broker HSBC has nevertheless adjusted the cursor on the equipment manufacturer from 26 to 27 euros while remaining on the buy side. It is true that the trend is generally heavy in the automotive sector, while the CAC40 yields almost 2% at mid-session, against a backdrop of economic concerns and a standoff that continues in the United States around the ceiling of the US debt…
Goldman Sachs had already initiated the monitoring of the value with a ‘buy’ notice and a target price of 25 euros. The investment bank estimated that the group remains well placed to benefit from the cyclical recovery in the volume of automobile production in the West… It sees the operating margin improving by more than 250 basis points until 2025, also noting the favorable synergies linked to the merger with Hella. Overall, GS sees the quality of the results improving “over time”… “Aggressive” deleveraging is also a key element of the investment thesis, underlines the broker.
Faurecia, a Group company Forviaand the American Cummins, have also signed a share and asset purchase agreement pursuant to which Faurecia will sell to Cummins part of its commercial vehicle exhaust aftertreatment business in Europe and the United States. United for an enterprise value of 142 million euros after “final technical adjustments”. The agreement provides for the transfer to Cummins of two Faurecia plants located in Roermond, the Netherlands, and Columbus, Indiana, United States, as well as their related activities. It ensures the integration of these plants and their employees into Cummins’ global operations. Faurecia can thus specialize in its exhaust activities for light vehicles with very low emissions and on its roadmap for hydrogen.
Faurecia’s Clean Mobility activities in commercial vehicle exhaust and after-treatment in other regions, mainly China and India, will continue…
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