Switzerland-listed automobile components producer Autoneum’s share value may improve by over 70% within the subsequent yr, in line with Vontobel. The funding financial institution raised its value goal on Autoneum to 215 Swiss francs ($248), representing a possible 74% upside from the present share value of 123.80 francs. The inventory additionally trades on U.S. exchanges. Autoneum manufactures light-weight auto elements equivalent to flooring liners for optimum safety in opposition to noise and warmth. The corporate provides components for BMW , Ford , Renault , Mercedes , GM and Volvo , amongst others. The Zurich-headquartered financial institution is optimistic about Autoneum’s money circulation enhancing in 2024 and revenue margins rising the next yr regardless of gross sales progress coming in barely under expectations. AUT.N-CH 1Y line International automobile manufacturing rebounded 9.4% in 2023, surpassing pre-pandemic ranges at over 90 million automobiles, Vontobel said. Nevertheless, Autoneum’s natural gross sales grew solely 7.2%, lagging the broader restoration, in line with the automobile components maker’s full-year income outcomes, launched Monday. The below-average topline progress was attributed to competitors from fast-growing Chinese language electrical automobile makers in Asia and the corporate’s choice which “prioritizes profitable growth,” stated Vontobel fairness analyst Arben Hasanaj in a notice to shoppers on Jan. 22. The strengthening of the Swiss forex additionally performed a job within the firm’s earnings. Analysts usually suggest that buyers keep publicity to Swiss belongings because the nation’s forex strengthens throughout crises and offers an efficient hedge. CHF= 1Y line When excluding unfavorable forex results that lowered gross sales by 7.2%, Autoneum’s 2023 income was 2.43 billion Swiss francs, assembly the corporate’s personal steering. The April acquisition of German firm Borgers Automative in 2023 added round 500 million francs in further gross sales. In distinction to Vontobel’s bullish outlook, Swiss financial institution UBS has a impartial view of the inventory, with a value goal of 110 CHF — 10% under the present share value. UBS analysts have forecast muted international car manufacturing progress, led by a 7% decline in European auto manufacturing volumes in 2024. This difficult trade atmosphere might restrict Autoneum’s potential for margin growth regardless of the advantages of its integration with Borgers, in line with UBS.
