Shares in Swiss-listed auto parts maker Autoneum could rise more than 70% next year, Vontobel said. The investment bank raised its price target on Autoneum to 215 Swiss francs ($248), representing a potential upside of 74% from the current share price of 123.80 Swiss francs. The stock also trades on U.S. exchanges. Autoneum produces lightweight automotive parts such as floor liners to provide optimal noise and heat protection. The company supplies parts to companies including BMW, Ford, Renault, Mercedes, General Motors and Volvo. The Zurich-based bank is optimistic about Autoneum’s improved cash flow in 2024 and higher profit margins next year, despite slightly weaker-than-expected sales growth. Vontobel said that global automobile production will rebound by 9.4% in 2023, exceeding pre-epidemic levels and exceeding 90 million vehicles. However, organic sales grew just 7.2%, lagging the broader recovery, according to the auto parts maker’s full-year revenue results released on Monday. Vontobel equity analyst Arben Hasanaj said in a note to clients on January 22 that the lower-than-average revenue growth was due to competition from Asia’s fast-growing Chinese electric vehicle manufacturers and the company’s “prioritization of profitable growth.” Decide. The Swiss currency also played a role in the company’s earnings. Analysts often advise investors to maintain exposure to Swiss assets, as the Swiss currency strengthened during the crisis and provided an effective hedge. CHF = 1-year line Excluding negative currency effects that caused sales to decline by 7.2%, Autoneum’s revenue in 2023 was CHF 2.43 billion, in line with the company’s own guidance. The acquisition of German company Borgers Automative in April 2023 added approximately 500 million francs in additional sales. Contrary to Vontobel’s bullish outlook, Swiss bank UBS has a neutral view on the stock, with a target price of CHF 110, 10% below the current share price. UBS analysts predict that global automobile production growth will slow down, and European automobile production will fall by 7% in 2024. UBS said that despite the benefits of integrating with Boggs, the challenging industry environment may limit Autoneum’s profit expansion potential.
