(FR) Valeo - Ratings and Ratios

Valeo SE is a global automotive technology leader, operating across three key segments: Power, Brain, and Light. The Power segment is a major player in the rapidly growing electric vehicle (EV) market, offering innovative thermal management solutions, including EV cooling systems, range extension technologies, and battery thermal management. The Brain segment is at the forefront of driving assistance and autonomous driving technologies, with a portfolio that includes ultrasonic sensors, radars, cameras, and domain controllers. Meanwhile, the Light segment provides a range of lighting and wiper systems, as well as sensor cleaning solutions.

Valeos product portfolio is well-positioned to capitalize on the automotive industrys shift towards electrification, autonomy, and connectivity. The companys commitment to innovation is reflected in its significant R&D investments, which have yielded a robust pipeline of new technologies and products. With a global footprint and a diverse customer base, Valeo is poised to benefit from the growing demand for advanced automotive technologies.

From a technical analysis perspective, Valeos stock price has been trending upwards, with the SMA20 and SMA50 indicators suggesting a bullish momentum. The stock is currently trading at €9.15, slightly above its SMA200 level of €9.01. The ATR indicator suggests a moderate level of volatility, with a 3.54% average true range. Given the current technical setup, a potential price target could be €10.50, representing a 15% upside from current levels.

Fundamentally, Valeos valuation appears reasonable, with a P/E ratio of 13.51 and a forward P/E of 3.43. The companys return on equity (RoE) stands at 10.16%, indicating a decent level of profitability. With a market capitalization of €2.28Bn, Valeo is a mid-cap stock with a relatively stable ownership structure. Looking ahead, we forecast Valeos earnings to grow by 20% YoY, driven by the increasing demand for its EV and autonomous driving technologies. This growth, combined with the companys improving profitability, could lead to a re-rating of the stock, potentially driving the price towards €12.00 in the next 12-18 months.