Jefferies says Valeo best placed for China slowdown, cuts Dauch to 'hold'
DCH•Other ratings
| Company | Rating | Old rating | PT | Old PT |
|---|---|---|---|---|
| Valeo | Buy | Hold | €17.85 | €13.20 |
| Dauch | Hold | Buy | $7.10 | $8.25 |
| Forvia (FRVIA.PA) | Buy | no change | €11.35 | €14.05 |
| Schaeffler (SHA0n.DE) | Buy | no change | €8.70 | €9.45 |
| AUMOVIO (AMV0n.DE) | Hold | no change | €42.30 | €46.40 |
| Autoliv (ALV.N) | Hold | no change | $119.00 | $134.00 |
Rating changes and rationale
It upgrades Valeo (VLOF.PA) to “buy” from “hold”, seeing it best placed to manage the current environment and pointing to its China order intake implying a 5x book-to-bill ratio versus 2x-3x for peers.
Jefferies adds Valeo's move into data centre solutions has aided its share price recently, but it needs to see more customer wins before incorporating this into its investment thesis.
The broker cuts Dauch (DCH.N) to “hold” from “buy” as it faces “slowing momentum” after a strong first half, partly due to disruption linked to GM's truck model changeover, elevated launch costs of new models, and potentially tougher-than-expected delivery of merger synergies.
