Update shared on 28 Nov 2025
Fair value Increased 0.71%Analysts have modestly increased their price target for Valeo, raising it from €11.85 to €11.93. This adjustment is based on recent improvements in quarterly performance and updated evaluations of future profitability and revenue growth.
Analyst Commentary
Recent Street research on Valeo reflects a mix of cautious optimism and ongoing concerns about the company’s future trajectory. Adjustments to price targets indicate evolving views of the company’s risk and reward profile.
Bullish Takeaways
- Bullish analysts highlight Valeo’s strong quarterly results, which have contributed to recent upward adjustments in price targets.
- Solid revenue growth and improved profitability have reassured observers about the company’s execution capabilities.
- The updates reflect confidence that Valeo can sustain its momentum across core segments. This supports further valuation improvements.
- Incremental increases in price targets signal expectations for steady, if moderate, upside potential.
Bearish Takeaways
- Bearish analysts remain cautious and cite ongoing risks related to Valeo’s divisional business mix and the challenges it presents for future performance.
- Despite improving financials, some see potential headwinds that could impact sustained revenue or margin growth.
- The maintained neutral or hold ratings point to underlying uncertainty. Valuation is considered fair in light of these risks.
What's in the News
- Renault has ended its rare-earth-free electric vehicle motor project with Valeo and is seeking a more cost-effective Chinese supplier, according to Reuters. (Reuters)
- Valeo has revised its earnings guidance and now expects 2025 sales of approximately EUR 20.5 billion with an operating margin between 4.5% and 5.5%. For 2028, the company projects sales between EUR 22 billion and EUR 24 billion, an operating margin of 6% to 7%, and global production of 90.6 million units. (Company announcement)
- Valeo and 2CRSi have formed a strategic partnership to develop next-generation liquid cooling solutions for edge computing environments. The partnership aims to deliver compact and energy-efficient cooling systems for decentralized data centers. (Company announcement)
Valuation Changes
- Consensus Analyst Price Target has risen slightly from €11.85 to €11.93, reflecting modestly improved market expectations.
- Discount Rate remains unchanged at 12.3%, indicating no shift in perceived risk.
- Revenue Growth projections have fallen from 1.54% to 1.08%, suggesting more conservative sales assumptions.
- Net Profit Margin estimates have decreased from 3.80% to 2.68%, pointing to expectations of lower profitability.
- Future P/E (Price-to-Earnings) ratio has increased from 4.97x to 7.20x, suggesting a higher valuation multiple for anticipated earnings.
Disclaimer
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