Maintain Faurecia turbo calls, after encouraging half-years

Turbo calls without code expiry WF1GB backed by Faurecia shares, which we recommended for purchase on June 16, posted losses of around 16%.

The action of the automotive supplier has marked a sharp decline since the beginning of July, in particular after a downgrading to “underweight” of the broker Barclays. However, this Monday, Faurecia appears as the largest increase in the SRD, climbing more than 7%.

Forvia, born of the merger between Faurecia and the German company Hella, published operating income above expectations, at 426 million euros, for the first half, in a context marked by an impact of inflation on the accounts of the society. Despite a drop of more than 16% in operating profit in the space of a year, JP Morgan called the half-year results ” resilient and underlined the positive cash generation over the period. The 2022 objectives are confirmed.

We therefore recommend keeping the products, while the passing on of price increases to customers should help improve Forvia’s margins in the second half. The knock-out barrier of 15.33 euros remains 14% away from the current level of the action.