(CercleFinance.com) – The stock recorded another session of decline (-2.5%) and posted a decline of more than 17% over the last four sessions.
Stifel on Wednesday reaffirmed its advice to buy the stock, while lowering its target price from 43 to 38.5 euros.
‘The first quarter was not bad’, estimates the analyst, who notes that at 5.3 billion euros, turnover increased by a third, thanks to the first consolidation of Hella, recently acquired and which contributed more than one billion euros to the activity.
Organic growth was modest but positive (+1.1%), outperforming long-term growth by 530 points, he adds.
According to the intermediary, the forecasts for the 2022 financial year imply limited organic growth, the group foreseeing a turnover of 23-24 billion euros for 2022, which corresponds to a growth of 4.9% .
‘However, if we do not take into account price increases (around 4.2%), organic growth is closer to 0.7%’, he notes.
And the uncertainties are increasing, notes the broker again: ‘it is difficult to speak of a ‘macro trough’. However, Faurecia’s scenario is now more conservative than ours (+3.8%), and production costs have been reduced. But inflation could impact the whole of 200 million additional euros.’
Invest Securities also confirms its buy opinion as the stock has fallen -51% since January. Faurecia is removed from its favorite Invest-Securities list.
The analyst believes that this publication was poorly received (-10.7% at the close). ‘It is not because of the turnover published above expectations but because of the 2022 guidance, which was unveiled after Hella’s integration’ indicates Invest Securities.
‘The 2022 EBITA margin is guided at 4%/5% where we were expecting close to 7% just like the consensus. The war changed the context. The future Forvia will have to accelerate asset disposals and cut its dividend to save FCF 2022,” adds the analysis office.
‘Our BNA 2022/24e are cut by -52%/-47%/-37.5% on a low range scenario and our price target stands at 37.4E against 61E’.
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