JPM resumes Schaeffler with 'neutral', cites short-term caution

Schaeffler AG

12/09/2024 07:49

** J.P.Morgan reinitiates Schaeffler  SHA_p.DE  with "neutral"
saying it is cautious about the German automotive supplier's
short-term setup 
    ** The broker sees risks from production cuts and slower
growth in e-mobility, while economic weakness in Europe, trade
friction and slowing battery electric vehicle adoption create
further uncertainty in the medium term
** "Additionally, we do not see material upside to synergy
targets and transition/combination years would depress cash
generation and de-leveraging," JPM says, referring to the
Vitesco acquisition
    ** It points to potential catalysts when Schaeffler and
Vitesco present their combined strategy after March 2025
    ** Out of 14 analysts that cover Schaeffler, eight rate the
stock "strong buy" or "buy",​ four "hold", and two​ "strong
sell" or "sell" - LSEG

(Reporting by Chiara Holzhaeuser)
((Chiara.Holzhaeuser@thomsonreuters.com))