TI Fluids is one of those European automotive players that investors know little about. It is neither a manufacturer like Volkswagen, Stellantis or BMW, nor a first-rate equipment supplier like Valeo, Forvia or Continental. It is, however, a tier-one supplier to industry in the field of fluid transport and storage. These include fuel tanks, air-conditioning systems and brake circuits.

The company celebrated its centenary last year. Born Bundy, it was founded in Detroit, USA. Bundy was listed on the New York Stock Exchange from 1976 until its takeover by TI Group in 1988. In 2001, TI Group fell into the hands of Smiths Group, sealing its British roots and refocusing on the automotive sector. The company was acquired again, this time by the Bain Capital fund, which sold the company via an IPO in London in 2017. Bain retains a 36.7% stake.

Un gros décollage

Double pleasant surprise

The stock is back in the spotlight this morning, thanks to significantly higher-than-expected results. Management, while remaining cautious (it is targeting 3.3% growth in global light vehicle sales this year), expects to post higher momentum than the sector. It has raised its Ebit margin forecast for 2023 to over 7%, while announcing a share buyback program. These are the magic words for an excellent stock market reception. Jefferies reiterated its positive view on the stock, raising its target price from GBp 125 to GBp 150, a level already achieved.