UBS has reiterated its neutral recommendation on Forvia shares, maintaining a price target of EUR10.2 following the release of the company's 'third-quarter revenue in line with expectations'.
"After the third quarter, we anticipate limited changes compared to consensus estimates for the 2025 fiscal year," UBS stated.
Forvia has confirmed its 2025 targets, which include revenue between EUR26.3 billion and EUR27.5 billion at constant exchange rates, an operating margin between 5.2% and 6% of revenue, and net cash flow equal to or greater than the 2024 level (EUR655 million).
The group is also targeting an adjusted net debt/EBITDA ratio of less than or equal to 1.8 times by December 31, 2025, on an organic basis, and has committed to bringing it below 1.5 times in 2026, a goal supported by asset disposals.
At the current share price, Forvia is trading at a 2026 P/E ratio of approximately 9x, with a yield close to 4%.
