Stifel reaffirms its 'buy' recommendation on Faurecia, with its target price raised from €23 to €26, in the wake of a sequence of EPS expectations for 2022-24 raised by an average of 10% for the automotive equipment supplier.

'Faurecia ultimately remains above all a card to play for deleveraging (and to a lesser extent, integration)', believes the broker, who expects a €1 billion reduction in net debt in 2023.

The only hurdle for the company is the demanding consensus expectations for adjusted operating margin in 2023, which are unlikely to be met by the Group's target next February', warns Stifel.

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