Faurecia climbs more than 5% on a recommendation upgrade from 'underperform' to 'buy', with a price target raised from 50% to 24 euros, as part of a Jefferies note on automotive suppliers.

The operating environment is finally becoming favorable for OEMs, and the post-Covid cycle of declining revenues seems to be coming to an end", says the broker, who would "use any potential disappointment on price compensation to increase exposure".

With regard to Faurecia, Jefferies highlights 'operating leverage supporting deleveraging and a repaired balance sheet, once already announced divestments are finalized, reducing gearing to around two times at the end of 2023'.

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