On Friday Berenberg reiterated its buy recommendation and €9 price target for Forvia shares, believing that the outlook for Q2 suggests positive surprises relative to current expectations, which it considers fairly cautious.

Although the automotive equipment manufacturer anticipates a slowdown in growth from one quarter to the next, its results could exceed forecasts for H1 and FY 2025, the analyst says.

However, in the near term, he adds that volatility in the sector is likely to continue, particularly due to the lack of visibility surrounding the issue of customs duties.

However, Berenberg notes that the group is accelerating its restructuring efforts, and that the expected recovery of the Chinese market should support its sales and margins in H2 2025.

The broker also emphasizes that the stock remains attractive, with a modest valuation of 7x EBIT and an estimated FCF yield of around 20% for 2025.


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