VLEEY - Valeo Makes Its Case For Long-Term Electrification Leadership But Analysts Still Obsessed With Near-Term Costs

“It takes money to make money” is a well-worn cliché, but the sell-side remains fixated on the R&D investments and JV losses Valeo (OTCPK:VLEEY) (FR.PA) is absorbing as part of its efforts to build a leading platform of passenger vehicle electrification technology. I can’t and won’t argue that Valeo’s margins today are great compared to peers, and I likewise won’t argue that there is still ample uncertainty as to what the long-term profitability of EV parts and systems will be, but I believe Valeo is making prudent investments to build a long-term business.