UBS cuts OPMobility on 'too optimistic' earnings consensus; auto suppliers slide

Opmobility SE

19/03/2025 10:01

** UBS downgrades OPMobility OPM.PA to "sell" from "neutral", saying the French auto parts supplier's earnings and FCF are likely to disappoint amid low car production

** "We anticipate earnings in 1H to prove challenging on the back of low production levels", while consensus seems "too optimistic", it says

** UBS adds implementation of the group's longer-term plan poses execution risks with potential benefits far from immediate

** Shares in OPMobility are down 4.7% by 0959 GMT, while peers Valeo VLOF.PA and Forvia FRVIA.PA drop 1.7% and 2.3%, respectively

** The sector's slide may be due to the downgrade, along with downbeat comments from Jean-Louis Pech, the CEO of French auto part manufacturers' federation FIEV, Midcap analyst Julien Thomas says

** Pech warned in an interview with Les Echos that there is a risk suppliers' capacities will shrink further in Europe

** Wednesday's fall wipes off OPMobility's YTD gains, pulling it down 1.7% since the start of 2025

 (Reporting by Dimitri Rhodes)

 ((Dimitri.rhodes@thomsonreuters.com))