Analyst Elizabelle Pang from DBS maintained a Buy rating on Valeo (0RH5 – Research Report) and keeping the price target at €12.50.
Elizabelle Pang has given her Buy rating due to a combination of factors that highlight Valeo’s strong market position and financial performance. Valeo’s 2024 results showed a year-over-year improvement in gross margins, driven by effective cost reduction strategies. Despite challenges in certain markets like China and North America, the company’s 2025 guidance exceeded expectations, with a focus on further margin improvements.
Valeo’s leadership in the automotive sector, particularly in electrification and advanced driver-assistance systems (ADAS), is underscored by its partnerships with major automakers such as BMW, Volkswagen, and Mercedes Benz. The company’s strategic acquisition of Siemens eAutomotive enhances its position in the electrification market. Additionally, Valeo’s undemanding valuation and anticipated earnings growth, with a projected two-year EPS CAGR of 91%, support the Buy rating. However, potential risks include exposure to EU/US markets and the pace of adoption of ADAS and electric vehicles.
According to TipRanks, Pang is a 3-star analyst with an average return of 1.0% and a 54.22% success rate. Pang covers the Consumer Cyclical sector, focusing on stocks such as Tesla, General Motors, and Bayerische Motoren Werke Aktiengesellschaft.
In another report released on April 30, Berenberg Bank also maintained a Buy rating on the stock with a €11.00 price target.