Jefferies downgrades its recommendation on Faurecia directly from 'buy' to 'underperform', with a price target lowered by 32% to 15 euros, in a note devoted to Europe's leading automotive equipment suppliers.

"We believe that the market is overconfident in suppliers' ability to cope with higher-than-normal cost inflation", judges the broker in the summary of this sector note.

In a year when OEMs are cutting prices to support demand, suppliers can't get both volume and price," he continues, reducing his expectations for 2023 by more than 15% to more than 10% below consensus.

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