JPM ups Gestamp to 'neutral' as it sees limited downside

Gestamp Automocion SA

29/11/2023 10:12

** J.P.Morgan upgrades Spanish auto parts manufacturer
Gestamp Automocion  GEST.MC  to "neutral" from "underweight",
saying it sees limited downside from current levels
    ** The stock rises 3.3% to 3.52 euros per share, cutting its
YTD losses to 2.5%; it's on track for best day since June
    ** JPM says Gestamp has shown margin resilience in an
environment of volatile production volumes and high inflation
    ** It predicts around 13% organic revenue growth and EBITDA
growth of over 15% for the company in 2023
    ** "All eyes will be on 2024 and expectations for earnings
development as production recovery slows down and labour
inflation is structurally higher in North America and Europe,"
JPM adds
    ** Out of 15 analysts that cover Gestamp, nine rate the
stock "strong buy" or "buy" and ​six "hold" - LSEG

 (Reporting by Tiago Brandao)
 ((Tiago.Brandao@thomsonreuters.com;))