(News Bulletin 247) – Morgan Stanley on Monday downgraded its recommendation on the Faurecia stock, which it reduced from ‘overweight’ to ‘weight online’, while maintaining its price target at 20 euros.
In a note released in the morning, the intermediary recalls that the automotive sector has signed a solid rebound on the stock market since its lows in October 2022, a recovery which it attributes – among other things – to a less severe European gas crisis. than expected and the reopening of the Chinese economy.
With an earnings season that has yet to confirm fears of a looming recession, the European STOXX Europe 600 Automobiles & Parts sector index has climbed 35% since the fall, he notes.
As for Faurecia, the stock’s gains have reached 64% since the start of the year and the value has more than doubled from its recent lows, even though the earnings per share (EPS) forecast for the market fell at the same time by one euro, underlines the analyst.
Estimating that the risk-reward profile of the title is today ‘more mixed’, Morgan Stanley says it currently prefers the title Valeo, as well as tire manufacturers.
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