Jun 03
Valeo boosts the confidence of the title
Almost 9% increase! Half an hour after the opening of the Paris Stock Exchange on Thursday, Valeo posted the strongest increase in the SRD: 8.77% to 23.81 euros in a market up 2.2%. The carmaker brings with it its main competitor Faurecia climbed 6.53% to 13.13 euros.
This remarkable evolution follows the statement released Wednesday by Valeo, in which the group calls itself "confident" in achieving its goal of doubling its operating margin compared to 2009, notified on 24 February. The group is therefore an operating margin of almost 4% of its turnover in 2009 against 1.8% and 2.7% in 2008.Just in the first half, Valeo anticipates an operating margin approaching 6%, the highest rate on a semester during the last eight years.
Nomura to buy rest
The supplier table, moreover, still for the first half of 2010, on a turnover of around 4.7 billion euros, an increase of about 35% compared to the first half of 2009. Consensus Thomson Reuters, meanwhile, put on a turnover of 8.2 billion euros for the group in 2010 with an operating profit of 301 million, which would result in a margin of 3.67%.
This perspective reinforces the analysts at Nomura, in their recommendation to purchase the title. They said the current valuation of Valeo offers significant upside potential and thus provides a good buying opportunity. Nomura sets the price target to 35 euros.
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