Aumovio : Sell less…to earn more

Aumovio, spun off from Continental, is a technology-focused automotive supplier undergoing a late-stage transformation. After several years of restructuring, the group has reshaped its portfolio around profitability and cash generation rather than volume growth. We see a clear inflection point, with improving visibility on margins (from 2.5% in 2024 to 4.5% in 2026e and 5.4% in 2028e, ODDO BHF estimates), a progressive recovery in FCF and a balance sheet that stands out within the European supplier space. Despite these improvements, the stock continues to trade at a deep discount to European peers. We initiate coverage with an Outperform rating and a €50 target price, as we see an attractive short- to medium-term re-rating opportunity, while acknowledging that the longer-term profile remains more speculative.