Good morning,

Yesterday Valeo reported results yesterday after the closing bell. The beat the street estimates and also our estimates. The company reported an EPS figure of E5.53 and we had forecasted an EPS figure of E5.24 and the market had expected E5.43. We had factored in an EPS figure of E5.54 in 2014 not 2013!

The company’s sales figures came in line with our estimates at E12.1mln and we were overly conservative on operating expenses.

This result should provide significant upside in our base case scenario. We expect a strong open in the share price this morning.

We have a price target of E100.80 on the stock. We will update the report and price target to factor in this new information in the coming days.

A copy of our report is available here