Valeo jumps after JPM flags datacentre, AI-driven upside
BUZZ-Valeo jumps after JPM flags datacentre, AI-driven upside ** Shares in French car parts supplier Valeo VLOF.PA rise over 9% after J.P. Morgan says datacentres, AI and resilience in its automotive business should boost margins
** JPM says Valeo is leveraging its expertise in AI, automation, advanced cooling technologies as well as drones to unlock new growth opportunities
** "This sovereign approach, relying on Western-sourced components, has positioned Valeo as a reliable partner in both defense and industrial automation," it says after hosting the company at its annual auto conference
** It notes Valeo is expanding into battery energy storage systems and datacentre liquid cooling, a market expected to reach $50 billion by 2035
** It adds the core automotive business remains resilient despite global uncertainties, targeting earnings before interest and taxes margin of 6-7% by 2028
** Shares reach their highest level since October 2023
(Reporting by Mathias de Rozario in Gdansk)