Faurecia Expects 2022 Sales to Rise as Semiconductor Shortages Ease — Report

Global automotive parts supplier Faurecia SE (FURCF) expects its full-year 2022 sales to rise year-over-year as semiconductor shortages ease from the second half of the year, a report published by Reuters said.

The company expects sales to total around €17.5 billion to €18 billion this year, compared to €15.6 billion last year.

Further, its operating margin is anticipated to range between 6% and 7% in 2022, compared to 5.5% in 2021.

Faurecia said that its projection is based on the assumption that global automotive production will reach 78.7 million vehicles this year.

Patrick Koller, the CEO of Faurecia, said, “Our most exciting challenge for 2022 will be the great opportunity to combine our operations and teams with Hella to create a powerful group, which is far more than the sum of the two pre-existing companies.”

The company plans to announce its 2022 guidance on April 28, along with the sales figures for the first quarter.

About Faurecia

France-based Faurecia supplies car seats, dashboards and fuel systems to automakers. It operates more than 300 production sites and 35 R&D centers in 37 countries across the world.

Its customers include Volkswagen (VWAGY), Stellantis (NYSE: STLA), Renault (RNLSY), Nissan (NSANF), Mitsubishi (MMTOF), Ford (NYSE: F), General Motors (NYSE: GM), BMW (BMWYY), Daimler (DDAIF), Toyota (NYSE: TM), Tesla (NASDAQ: TSLA), Hyundai (HYMTF), Kia (KIMTF), Jaguar Land Rover and BYD, among others.

Faurecia’s shares lost 3.5% on Friday to close at $45.84.

Analysts’ Take

Recently, HSBC analyst Edoardo Spina maintained a Buy rating on the stock and lowered the price target to $56.78 (24% upside potential).

Additionally, Christoph Laskawi of Deutsche Bank reiterated a Buy rating on Faurecia and raised the price target to $62.46 (36.3% upside potential).

Based on 6 Buys and 1 Hold, the stock has a Strong Buy consensus rating. The average Faurecia price target of $60.01 implies 31% upside potential from current levels. Shares have gained 24.6% over the past year.

The company is scheduled to release its fourth-quarter 2021 results today.

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