(Boursier.com) — In a market struggling to return to positive territory on Tuesday, Faurecia wins 1.5% to 20.7 euros. The equipment manufacturer benefits from the support of several analysts who reviewed their copy on the file after the group’s annual publication. Invest Securities notably increased its target from 23.1 to 29 euros while remaining on the ‘purchase’. This annual update confirmed a clear recovery in the second half and a good “momentum” of activity in the fourth quarter, explains the broker. In addition, the asset disposal plan announced for finalization at the end of 2023 is almost completed with agreements with Cummins and Motherson, securing the deleveraging effort of 1 MdE in 2023. Barring an accident, the rebound can continue, says the broker .
Oddo BHF upgrades the file from 22 to 25 euros (‘outperform’). In terms of operations, this publication confirmed Faurecia/Forvia’s progress with an operating profit of 5% (+60 bp vs. H1) and FCF generation now a priority and up very sharply (+369 ME in H2). Despite 2023 prospects deemed favorable and better than expected (all the more so by integrating management’s caution), the broker is adjusting its estimates downwards (-8% on EPS despite +1% on EBIT) due to the scope effect following recent announcements of disposals as well as the integration of more cautious elements under EBIT (slightly higher financial expenses and tax rates). Finally, in terms of valuation, and despite the very good stock market performance since January 1 (+42%, nevertheless after a very difficult year 2022…), the multiples still seem attractive with a PE below 4.0x which does not yet fully reflect the group’s new profile (product/technology portfolio but also financial leverage now largely under control). Faurecia remains the analyst’s ‘Top Pick’ among OEMs.
Stifel also sees the stock price continuing to recover from a weak base as signs of deleveraging materialize. The broker (‘purchase’) raises the cursor from 26 to 29 euros.
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