(News Bulletin 247) – Berenberg raised his target price on Forvia on Thursday, which he raised from 24 to 25 euros, following the presentation of the group’s annual results, which he said alleviated fears related to its debt.
The analyst believes that the strong cash-generating capacity displayed by the automotive supplier, combined with its billion-euro disposal program, have calmed concerns about a debt deemed by some to be ‘excessive’ following the acquisition of Hella.
For Berenberg, who maintains his advice to purchase the title, investors will now be able to focus on the solid fundamentals of the group, namely the recovery of its margins and its cash in a stabilized environment in terms of volumes.
Added to this are synergies and cost reduction measures, adds the intermediary, not to mention the commercial advantages drawn from the new joint offer put in place by Faurecia and Hella, he concludes.
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