Citi starts Aumovio at 'buy', sees upside from restructuring

AUMOVIO SE

Mon 09:20

** Citigroup initiates coverage of German automotive technology firm Aumovio AMV0n.DE with a "buy" rating as its clean balance sheet and low leverage offer upside
** The brokerage says the supplier "ticks a lot of boxes" in a sector context, noting that its significant net liquidity position provides "a much greater defensiveness versus peers through any cycle downturn"
** The broker expects the firm to achieve healthy EBIT growth through transformational restructuring, reduced research and development spending and improved plant loading 
** The brokerage adds that the stock remains extremely cheap while trading at a discount that appears overly harsh given its limited financial risk
** Out of 10 analysts that cover Aumovio, 8 rate the stock "strong buy" or "buy,"​ 2 rate "hold" and no analysts rate the stock "strong sell" or "sell" - LSEG data
** The stock is up 1.3%
     
     

 (Reporting by Orest Dovhan)
 ((Orest.Dovhan@thomsonreuters.com))