Jefferies says Valeo best placed for China slowdown, cuts Dauch to 'hold'

Dauch

23/09/2026 07:11

** Jefferies says auto parts sector's valuations are "already depressed" but warns a slowing Chinese market leaves little scope for a recovery as exposure to the higher-margin market dwindles
** It upgrades Valeo  VLOF.PA to "buy" from "hold", seeing it best-placed to manage current environment and points to its China order intake implying a 5x book-to-bill ratio versus 2x-3x for peers
** Jefferies adds Valeo's move into data centre solutions has aided its share price recently, but it needs to see more customer wins before incorporating this into its investment thesis
** The broker cuts Dauch  DCH.N to "hold" from "buy" as it faces "slowing momentum" after a strong H1, partly due to disruption linked to GM's truck model changeover, elevated launch costs of new models, and potentially tougher-than-expected delivery of merger synergies
     
COMPANY
RATING
OLD RATING
PT
OLD PT
Valeo
Buy
Hold
€17.85
€13.20
Dauch
Hold
Buy
$7.10
$8.25
Forvia FRVIA.PA 
Buy
no change
€11.35
€14.05
Schaeffler SHA0n.DE 
Buy
no change
€8.70
€9.45
AUMOVIO AMV0n.DE 
Hold
no change
€42.30
€46.40
Autoliv ALV.N 
Hold
no change
$119.00
$134.00
     

(Reporting by Jakob Van Calster)
((jakob.vancalster@thomsonreuters.com))