Valeo has been downgraded by UBS from Buy to Neutral, with a revised price target of €8. The downgrade is a result of increased uncertainty in the automotive sector.
Factors contributing to this decision include strict CO2 emissions regulations, ongoing strikes at Volkswagen, and the impact of customs duties. UBS is concerned about a lack of volume growth and poor visibility regarding OEM production schedules. They also anticipate strong cost pressures and low profit margins, with potential balance sheet weaknesses due to weak free cash flow.