Valeo’s Mixed Outlook: Strong Margins Amid Revised Sales Guidance and Market Challenges

Analyst Vanessa Jeffriess of Jefferies maintained a Hold rating on Valeo, retaining the price target of €8.15.

Vanessa Jeffriess’s rating is based on several considerations surrounding Valeo’s recent performance and future outlook. The company’s first-half results for 2025 surpassed expectations, largely due to effective cost management strategies that led to improved margins across all divisions. However, the sales guidance for the full year 2025 has been revised downward, now falling 2% below Jefferies’ estimates, primarily due to foreign exchange and start of production (SoP) volatility.
Despite these challenges, there are factors that could lead to a better performance in the second half of the year, such as the potential for outperformance in the Chinese market. Nonetheless, Vanessa Jeffriess believes that significant efforts are still required to navigate the existing challenges, justifying the Hold rating on Valeo’s stock.

According to TipRanks, Jeffriess is a 4-star analyst with an average return of 10.6% and a 67.50% success rate.