Citigroup upgrades Forvia to 'buy' on 30% cash flow yield

Forvia SE

08/07/2026 08:10

   ** Citigroup upgrades France-based automotive equipment supplier Forvia FRVIA.PA to "buy" from "neutral", saying the recent share price pullback has been overdone and citing the group's attractive valuation and roughly 30% free cash flow yield
   ** "Forvia's ~30% free cash flow yield is evidence that a lot of bad news is now priced-in," the brokerage says
  ** "We believe there is still some breathing space within the top-line corridor for some further modest Light Vehicle Production (LVP) downside," the brokerage says, adding that a reiteration of full-year guidance could support investor sentiment over the summer
** Shares up 1.9% to EUR 9.2 at 07:02 GMT, pares gains after rising as much as 4.1%, lowest since June 25, 2026
** Out of 16 analysts that cover Forvia SE, nine rate the stock "strong buy" or "buy", six rate "hold" and one rates the stock "sell" - LSEG data
     

 (Reporting by Ronan Corcoran in Gdańsk)
 ((ronan.corcoran@thomsonreuters.com))