Deutsche Bank and J.P. Morgan initiated coverage of Aumovio, the automotive supplier recently spun off from Continental, with both banks recommending investors buy the shares.
Deutsche Bank analyst Christoph Laskawi started coverage with a “buy” rating and a price target of €50.
Laskawi noted that Aumovio, like many other spin-offs, may face index-driven selling pressure in the first weeks of trading.
He said the company has been set up with a strong balance sheet compared with peers, with net debt including pensions at about zero.
That position, according to the analyst, also covers potential legal risks and restructuring cash-outs.
Laskawi said Aumovio currently lags peers on several performance indicators but is expected to move closer to the peer group by reaching its midterm margin target of 4-6%, up from 2.5% in 2024.
He added that the company aims to generate more sustainable free cash flow than peers, with cash conversion around 35%.
The separation from Continental should allow Aumovio to move faster on portfolio and cost measures, the analyst said.
J.P. Morgan also began coverage with an “overweight” rating and a price target of €52 for December 2026.
Analyst Jose M. Asumendi wrote that Aumovio is a leading global supplier of electrical, electronic, mechatronic, and mechanical components, software, and systems for the automotive technology sector.
He said the investment case centers on restoring organic growth and achieving 4-6% margins, driven by research and development efficiency in autonomous mobility and manufacturing, as well as content gains in user experience.
J.P. Morgan expects the stock to trade at its target price at 0.4 times estimated 2025 EV/Sales.
Source :
https://www.investing.com/news/stock-market-news/aumovio-spinoff-draws-buy-ratings-from-db-and-jpm--with-targets-up-to-52-4246300
