The analyst firm remains Buy on the stock, with a target price of E73, following the announcement of its Q1 2024 figures. The Group's consolidated sales amounted to around €9.8 billion (consensus €10.0 billion). Adjusted EBIT margin is expected to be around 2.0% (consensus 3.7%).

The analyst believes that 'expectations were low, but not to this extent (Q1 margin is 2% vs. consensus 3.7%, and full-year guidance is 6-7%).

' We are risk-adjusting our numbers and are below expectations for the automotive sector. There is potential value, but when it will be realized through earnings recovery or portfolio management is uncertain ' says Jefferies.

The non-tire business is trading on EBIT of less than 5x, and a reversal of this situation is not certain in the short term', adds the analyst.

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