Kepler Cheuvreux cuts Gestamp on limited upside potential

Gestamp Automocion SA

28/02/2025 12:09

** Kepler Cheuvreux downgrades Spanish automotive parts manufacturer Gestamp Automocion GEST.MC to "hold" citing lack of further upside potential to broker's 2.8 euro target price

** The broker says that although Q4 earnings were better-than-expected and the company met its revised 2024 guidance, the 2025 targets imply small cuts to consensus

** It points out the new guidance highlights an unfavourable geographic mix with limited margin improvement and free cash flow generation

** "The likely implementation of United States-Mexico-Canada  tariffs and potential pan-European incentives remain two significant binary catalysts for European suppliers," it adds

** At 11:50 GMT shares fall 6.3% at 2.6 euros

** Out of 14 analysts that cover Gestamp, eight rate the stock "strong buy" or "buy," ​five rate "hold" and one rates the stock "sell" - LSEG

 (Reporting by Marta Serafinko in Gdansk)

 ((Marta.Serafinko@thomsonreuters.com; +48 58 769 66 00;))