(Boursier.com) — Valeo camped on 16 euros this Friday, while Citigroup lowered its price target on the equipment manufacturer from 20 to 16 euros precisely, in an automotive market which remains at the heart of the energy transition. Moody’s recently maintained the equipment manufacturer’s long-term issuer rating of ‘Baa3’, but lowered the associated outlook from ‘stable’ to ‘negative’… The agency explains that its choice reflects the increased risk that Valeo is not able to reach credit ratios corresponding to its Baa3 rating by 2023, given the dilutive effects linked to the full consolidation of its previous joint venture Valeo eSiemens and an increasingly difficult outlook for the automotive industry for 2023, as well as continued challenges from raw material and energy cost inflation that have yet to be fully passed on to OEMs.
Among other brokers’ opinions, HSBC reduced its target to 17.5 euros with a ‘hold’ opinion and Goldman Sachs reduced its target from 25 to 20 euros, while remaining a buyer.
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