Valeo on track for biggest drop in 5 years after sales guidance cut

Valeo SE

25/07/2025 08:30

** Shares in France's Valeo VLOF.PA fall over 14% after the car parts supplier cut its 2025 sales guidance by about 1 billion euros ($1.18 billion), citing a forex impact of 750 million euros

** While at least three analysts say Valeo had a strong set of results in H1, they also point to the reduced sales guidance and a difficult global context for the auto industry

** "Although a range of factors support sequentially improved 2H performance ... we feel there is a lot of work to do against a challenging backdrop," Jefferies says

** The Paris-listed stock is at the bottom of European automobiles & parts .SXAP index, which falls 1.2%

** if losses hold, it will see its worst day since March 2020

($1 = 0.8511 euros)

(Reporting by Alessandro Parodi)

((Alessandro.Parodi@thomsonreuters.com;))