The information provided herein is generated by experimental artificial intelligence and is for informational purposes only.
credit hedging costs surge as trade war fears escalate in global markets
Credit hedging costs have surged following U.S. tariffs, with the iTraxx Crossover index for junk-rated firms experiencing its largest intraday rise since the Credit Suisse collapse. Auto suppliers, particularly Forvia SE, faced significant bond price declines, reflecting investor anxiety over potential trade war repercussions and rising recession risks in the U.S. The market is bracing for inflation and downward adjustments in revenue expectations as the fallout from these tariffs unfolds.
forvia maintains strong position in global automotive equipment market
FORVIA SE is a leading global designer and manufacturer of automotive equipment, with a diverse product range including seats (32% of sales), vehicle interior modules (18.9%), audiovisual and multimedia equipment (15.5%), and exhaust systems (15.4%). The company operates over 290 production sites worldwide, with significant sales in Europe, Asia, and America.
Deutsche Bank lowers Forvia SE price target amid disappointing guidance and dividend cut
Deutsche Bank has lowered its price target for Forvia SE to EUR12.50 from EUR15.00 while maintaining a Buy rating. This adjustment follows the company's second-half 2024 results, which met expectations, but its forward guidance disappointed investors, leading to a dividend cut and postponed asset sales until 2026. Despite these setbacks, the analyst views the company's focus on core business and portfolio streamlining as positive, although increased share price volatility is anticipated as investors await the impact of cost-saving measures in early 2025.
Forvia Appoints New CEO Amid UBS Downgrade and Market Challenges
Forvia's stock fell 5.02% to €7.526 following the announcement of a CEO change and a downgrade by UBS. Patrick Koller will step down on March 1, 2025, to be succeeded by Martin Fischer, while UBS has shifted its rating from Buy to Neutral, citing significant uncertainty and pressure on profit margins.
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