Sogefi: Restructuring Costs, Softer Auto Outlook and Priced-In Improvements Justify Neutral (Hold) Rating

Monica Bosio, an analyst from Intesa Sanpaolo, maintained the Hold rating on Sogefi SPA. The associated price target was raised to €3.20.

Monica Bosio has given his Hold rating due to a combination of factors related to both the company’s ongoing restructuring and the current market environment. The decision to shut down the Douai plant in France is expected to trigger notable restructuring expenses in the near term, even though it should strengthen Sogefi’s industrial footprint and cost base over the medium term, with anticipated savings visible by 2027 and better utilisation of its lower-cost facilities. She assumes that these measures can be funded through internal cash generation, allowing the company to preserve a solid balance sheet and sustain its dividend policy.

At the same time, her revised forecasts incorporate a slightly weaker global automotive production scenario and continued adverse currency effects, leading her to trim revenue and earnings expectations, especially for 2026, before the full benefits of the cost savings are realised. While she remains positive on management’s execution in reorganising the Suspension business and the production network, she believes that these improvements are already largely incorporated into the current share price. Her updated valuation work, based on sector multiples and a sum-of-the-parts approach, yields only a marginally adjusted target price of EUR 3.2, which she considers consistent with maintaining a Neutral (Hold) recommendation, albeit with an attractive dividend yield as a supporting element.

In another report released on January 19, Kepler Capital also maintained a Hold rating on the stock with a €3.20 price target.