Elizabelle Pang, an analyst from DBS, maintained the Buy rating on Valeo (0RH5 – Research Report). The associated price target is €12.50.
Elizabelle Pang has given her Buy rating due to a combination of factors that highlight Valeo’s strong market position and promising financial outlook. The company’s 2024 results showed an improvement in gross margins, thanks to ongoing cost reduction efforts, and the 2025 guidance exceeded expectations despite existing challenges. This reflects management’s focus on enhancing profitability, which is a positive indicator for potential investors.
Valeo’s leadership in the automotive sector, particularly in electrification and advanced driver-assistance systems (ADAS), is reinforced by strategic partnerships with major players like BMW and a significant stake in Siemens eAutomotive. The company’s ability to maintain a stable dividend yield and its undemanding valuation, trading at a forward PE of 5.8x, further supports the Buy recommendation. However, potential risks such as exposure to EU/US markets and the pace of adoption for ADAS/EVs are noted, but the overall outlook remains optimistic.
Pang covers the Consumer Cyclical sector, focusing on stocks such as Tesla, Ford Motor, and General Motors. According to TipRanks, Pang has an average return of 2.0% and a 48.65% success rate on recommended stocks.
In another report released on February 28, Evercore ISI also maintained a Buy rating on the stock with a €16.00 price target.