Valeo stock briefly breaks through its €13.65 support level following BofA downgrade
The automotive supplier is posting significant losses mid-session, in a Paris market that is itself declining. The pullback reduces part of the gains made in recent weeks but leaves cumulative performance still positive over three months. This follows a downgrade from a major U.S. brokerage.
A support level breached during the session and a stock trading below its two short-term moving averages
Valeo is down 5.76% to €13.66, at the bottom of the SBF 120 (ranking 117 out of 120), and features among the index's largest declines, which is losing 0.81%. The stock has broken through its €13.65 support level down to a low of €13.37, before recovering slightly above that level. The price is now 6.7% below its 20-day moving average, but remains 6.7% above its 200-day moving average.
Over the week, the stock is down 6%, which trims some of the one-year gains (+31%) while still maintaining a positive cumulative performance over three months (+5.9%). Brent crude is up 4.2% to $104 per barrel, which represents a cost factor for an automotive sector supplier. French rates remain tight, with the ten-year OAT at 4.83%.
BofA downgrades to sell and cuts price target to €13
BofA Securities downgraded its rating yesterday from "hold" to "sell" on Valeo and reduced its price target from €15 to €13, a level approximately 5% below the current price. It is this downgrade, dated October 7, that accompanied today's selloff. Conversely, Jefferies' upgrade to buy on September 23 had fueled the previous rebound.
On the fundamentals side, the group reaffirmed all of its 2026 targets when reporting first-half results on July 22. Valeo will also present its thermal exchanger for data centers with OVH Cloud at the OCP Global Summit from October 12 to 15, followed by its technologies at the Paris Motor Show from October 12 to 18. Declared net short positions reached 9.47% of capital, distributed among seven funds, down 0.86 percentage points over one month.
