Valeo, the Industrials sector company, was revisited by a Wall Street analyst today. Analyst Vanessa Jeffriess from Jefferies maintained a Hold rating on the stock and has a €10.35 price target.
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Vanessa Jeffriess’s rating is based on a combination of factors including Valeo’s recent progress amidst challenging conditions and the anticipation of its upcoming Capital Markets Day (CMD) in Paris. The company is expected to present realistic growth targets that reflect its technological advancements in areas such as software-defined vehicles (SDVs) and autonomy, as well as its competitive stance in the Chinese market.
Despite these positive developments, the industry has undergone significant changes since Valeo’s last strategic plan, and the projected 4-6% medium-term sales compound annual growth rate (CAGR) aligns with industry standards. However, the feasibility of achieving these growth rates remains uncertain due to global light vehicle production forecasts, geographic distribution, and competitive pressures. Consequently, Jeffriess’s Hold rating reflects a cautious optimism, acknowledging Valeo’s potential while recognizing the inherent risks and uncertainties in the current market environment.
Jeffriess covers the Consumer Cyclical sector, focusing on stocks such as Aumovio SE, AB Dynamics, and Dowlais Group PLC. According to TipRanks, Jeffriess has an average return of 9.1% and a 63.16% success rate on recommended stocks.
In another report released on November 17, UBS also maintained a Hold rating on the stock with a €10.00 price target.