VLEEF - Valeo Looks Undervalued On EV Assets But Future Of Its Market Still In Flux
- Valeo produced better than expected results for the second quarter, with slightly better sales and meaningfully better margins despite cost inflation trends.
- Management announced more than EUR 1B in orders for the Siemens high-voltage JV and strong hybrid/EV orders overall, but bears remain convinced that insourcing will destroy the opportunity.
- Valeo looks significantly undervalued on 3%-4% long-term revenue growth and 7% FCF growth, but management must convince the Street it has an essential role in the hybrid/EV future .
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Valeo Looks Undervalued On EV Assets, But Future Of Its Market Still In Flux