VLEEY - Valeo Still Outgrowing The Market But Investors Stung By Weak Guidance
- Valeo's fourth quarter results were better than expected, with improving performance relative to underlying auto production and better than expected margins.
- Guidance was weaker than expected and confusing, with management guiding about 7% below the Street on "conservative" assumptions that seem to imply lower content-per-vehicle.
- Valeo has logged some early wins on hybrid/EV models, but management really needs to deliver on more EV wins in 2021 to shift sentiment.
- Mid single-digit revenue growth and mid-to-high single-digit FCF growth can support a fair value 30% above today's price, but management has to deliver on content growth, EV wins, and margins.
For further details see:
Valeo Still Outgrowing The Market, But Investors Stung By Weak Guidance