Ayvens SA (3AL) has received a new Hold rating, initiated by Jefferies analyst, .
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Jefferies has given his Hold rating due to a combination of factors impacting Ayvens SA. The company, being Europe’s largest independent auto lessor, faces significant competitive pressure in the fleet market. This pressure, coupled with rising service input costs and uncertainties around electric vehicle residual values, presents notable risks to the company’s profitability.
Despite recent progress in synergies and cost-income ratios compared to peers, Jefferies believes that the incoming CEO, Philippe de Rovira, may not be able to sufficiently enhance core returns to warrant a more favorable rating. Additionally, while Ayvens has potential levers for improvement, such as increasing service penetration or enhancing productivity, these may come at the cost of profitability. The current market conditions and strategic challenges lead Jefferies to maintain a cautious outlook, justifying the Hold rating.