On Monday, Deutsche Bank (ETR:DBKGn) adjusted its financial outlook for Forvia SE (FRVIA:FP), reducing the price target from EUR18.00 to EUR15.00, while still recommending a Buy rating for the stock. This revision follows a recent profit warning from Hella, a member of the Forvia group, which prompted Forvia to lower its full-year forecast. The revised forecast is due to the same market challenges and start of production (SOP) delays that affected Hella.
The analyst from Deutsche Bank noted that the updated guidance for Forvia suggests only minor adjustments to the consensus estimates for 2024. However, the management's cautious stance on expectations for 2025 could lead to further revisions in the future. The Forvia group, including Hella, is actively working to improve competitiveness and find new synergies to navigate the current headwinds.
Despite today's profit warning, Forvia's shares have performed better than expected, although the analyst anticipates increased market volatility during the upcoming reporting season. This volatility is expected due to the possibility of additional warnings and as market expectations begin to align with the forecasts for the fiscal year 2025.
The bank's analyst mentioned that the reduction in the forecast and price target for Forvia to EUR15 is a response to the anticipated market conditions. The effects of the profit warning are seen as having a neutral impact on the market's perception of Forvia's stock.
The Forvia group's proactive measures to counteract the negative trends are part of their strategy to remain competitive in a challenging environment.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.