The factors in favour of a rise in the Valeo share price:
The positioning of the Valeo Group in its sector of activity is of course an undeniable strength for the performance of its share price. Valeo is the world's leading automotive equipment manufacturer, which gives it a certain reputation and undeniable strength in the market.
On the other hand, the Valeo Group has succeeded in positioning itself strategically on a particularly coveted market, namely China. Indeed, more than 14% of the company's original equipment sales are made on the Chinese market, whereas original equipment sales in Western Europe represent only 34% and those in North America only 22%. Compared to the promise and opportunities offered by the Chinese market, this performance can be considered lesser. It is therefore likely that Valeo will be able to maintain its lead in emerging markets and take advantage of this advantage over its main competitors.
The strong growth of the automotive market can also be considered as an asset for the Valeo Group, which has been experiencing interesting annual growth rates for several years now, despite the rather morose economic context and the decline in activity recorded by many other sectors. With its leading position, Valeo is the first to benefit from this increase in demand by filling its order book and multiplying new contracts.
We also appreciate the good division of the Valeo Group's activities into four main areas: comfort equipment, propulsion equipment, thermal equipment and visibility equipment. Thanks to this intelligent division, Valeo is able to supply all automotive companies and meet different needs while protecting itself from the risks associated with a single type of product.
Valeo is also remarkable for the quality of its innovation policy. The Group is focusing on innovations in certain very popular sectors such as CO2 emissions reduction, which enable it to offer its customers products with greater added value and a more comfortable margin, such as Premium OEM, energy efficiency, Stop&Start, superchargers, sensors, connectivity and laser scanners for automatic vehicles.
Investors are naturally very reassured by Valeo's ability to offer excellent visibility on its future growth. This applies in particular to forecasts for its sales and orders, which have been at record levels for several years.
The Valeo Group also benefits from an attractive exchange rate with its main customers in the Asian and American markets, thanks to an advantageous euro/dollar parity.
Finally, Valeo's strong capacity to contain its level of debt should be emphasized, which has earned it a particularly high rating from the rating agencies and thus increased investor confidence.
