(CercleFinance.com) – Forvia shares were among the biggest risers in the SBF 120 index on Friday on the Paris Stock Exchange, driven by a double recommendation increase from Barclays analysts.
At 2:15 p.m., the automotive supplier’s action gained 1.3%, significantly outperforming an SBF up just 0.2%.
Barclays went directly from ‘underweight’ to ‘overweight’ on the value, with a price target raised from 20 to 24 euros.
In a study devoted to the European automotive equipment supplier sector, the analyst believes that it is time to look again at the file, which it had degraded in July 2022.
While he recognizes that Forvia is far from being isolated from the turbulence currently shaking the market (slowdown in electricity, high interest rates, etc.), Barclays says it has the feeling that ‘the worst is over’ around value.
From his point of view, the file is at a ‘turning point’, particularly in terms of its free cash flow.
And with the stock down 21% since the start of the second half, the valuation of the stock is now more attractive, he adds, with a PER falling below its long-term average.
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