Valeo: BofA upgrades its recommendation to 'buy'

BofA analysts raise their target price to €24

"Valeo is well-positioned to benefit from the strong demand for electric vehicles"

BofA analysts have upgraded their recommendation on Valeo to "buy" from "neutral", citing the company's strong position in the electric vehicle market. They also raised their target price on the stock to €24 from €21.

"Valeo is well-positioned to benefit from the strong demand for electric vehicles," the analysts wrote in a note to clients. "The company has a leading position in the market for electric motors and inverters, and it is also developing a number of other innovative technologies for electric vehicles."

The analysts also noted that Valeo is benefiting from the growing trend towards autonomous driving. "Valeo is a leader in the development of sensors and other technologies for autonomous vehicles," the analysts wrote. "We believe that this market will continue to grow rapidly in the coming years."

BofA's upgrade of Valeo comes as the company is set to report its first-quarter results on April 27. Analysts are expecting Valeo to report strong sales and earnings growth, driven by the strong demand for electric vehicles.

Valeo is a French multinational automotive supplier headquartered in Paris. The company produces a wide range of automotive components, including electrical systems, lighting systems, and powertrain systems. Valeo is one of the world's largest automotive suppliers, with operations in 33 countries and over 113,000 employees.

Key takeaways

• BofA analysts have upgraded their recommendation on Valeo to "buy" from "neutral".
• The analysts raised their target price on the stock to €24 from €21.
• BofA believes that Valeo is well-positioned to benefit from the strong demand for electric vehicles and the growing trend towards autonomous driving.
• Valeo is set to report its first-quarter results on April 27. Analysts are expecting Valeo to report strong sales and earnings growth.