Barclays reaffirms its 'overweight' recommendation on Forvia, while lowering its target price from €20 to €16, after the automotive supplier significantly revised its expectations for 2024-25.
The acceleration of Forvia's efforts to extract synergies and cost savings, as well as a constructive message on asset disposals and balance sheet deleveraging, give us confidence that the worst is now behind us", the broker believes.
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FORVIA SE is one of the world leaders in designing, manufacturing, and marketing automotive equipment. Net sales break down by product family as follows:
- seats (32%; No. 1 worldwide);
- interior car parts (18.9%; 1 worldwide): dashboards and instrument panels (No. 1 worldwide), doors and door panels, and acoustic modules;
- audiovisual and multimedia equipment (15.5%): car radios, multimedia devices, navigation systems, automatic guiding systems, location systems, safety assistance systems with CDD captor cameras, wireless communication, monitors, etc.;
- exhaust systems (15.4%; No. 1 worldwide);
- lighting equipment (14.4%);
- other (3.8%).
At the end of 2024, the group had more than 290 production sites worldwide.
Net sales are distributed geographically as follows: France (5.8%), Germany (10.3%), Europe-Middle East-Africa (30.7%), Asia (26.7%) and America (26.5%).
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