An excessive market reaction that offers good entry price to play H1-18 & 2018
Ahead of the start of the H1-18 earnings publication period (which starts mid July), we come back onFaurecia’s investment case and believe recent share price deterioration (-17% over 1 month) due to
uncertainties on auto sector offers attractive entry price as LfL sales and margin growth should remain
solid both in H1 & 2018. Based on our new estimates which stand 4.5% above consensus (on EPS),
Faurecia is today the cheapeast automotive supplier within our coverage with PEG of 0.7x for 2018
and 0.6x for 2019. We upgrade our rating from Neutral to Buy with a new FV at €72/sh.
Faurecia is an automobile equipment supplier based in France. Co.'s activities can be divided into four business units: Automotive Seating (design of vehicle seats, manufacture of seating frames and adjustment mechanisms, and assembly of complete seating units); Emissions Control Technologies (design and manufacture of exhaust systems); Interior Systems (design and manufacture of instrument panels, door panels and modules, and acoustic components); and Automotive Exteriors (design and manufacture of front ends and safety modules). Some of Co.'s customers are PSA Peugeot Citroen, VW Group, Renault-Nissan, Ford Group, BMW and GM Group.
Since 1996, Bryan, Garnier & Co has been growing with an absolute conviction that the investment banking landscape would experience a major revolution: most of the large local generalist banking groups will disappear to the benefit of a handful of global powerhouses, and an emerging group of independent, highly specialised boutique investment banks.
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