(CercleFinance.com) – The title Faurecia shows Monday the sharpest decline of the SBF 120 index on the Paris Stock Exchange, penalized by the lowering of the recommendation of the analysts of Morgan Stanley, which the latter justify by questions of valuation.
Around 11:30 a.m., the action of the automotive supplier dropped more than 8.8% while the SBF 120 index lost around 2.5% at the same time.
In a note released in the morning, Morgan Stanley’s teams explain that they have lowered their recommendation on the title from ‘overweight’ to ‘weight online’, while maintaining their price target at 20 euros.
“After a 35% rally since October, and a stock price that has doubled from its lows, we believe that the stock’s risk-return profile has become more mixed”, explains the office of studies.
Within the sector, Morgan Stanley now says it prefers Valeo shares as well as those of tire manufacturers.
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