Italy's Sogefi nine-month revenue rises on Europe, India growth

Overview

• Italy automotive components maker's nine-month revenue grew 1.2% yr/yr

• Net profit for nine months rose to EUR 33.6 mln

• Adjusted EBITDA for nine months increased 8.2% yr/yr

Outlook

• S&P Global forecasts slowdown in automotive sector output in Q4 2026

• Passenger Cars sector expected to see 1.7% decline for full-year 2026

• Heavy Duty Vehicles sector expected to grow 2.3% in 2026, with weak Q4

Result Drivers

• CHINA REVENUE DECLINE - Sogefi said revenue in China fell 15.3% due to lower domestic market demand and delayed supply contracts

• EUROPE AND INDIA GROWTH - Revenue rose in Europe (+4.4%) and India (+5.1%)

• AIR AND COOLING SEGMENT - Air and Cooling segment revenue grew 4.1%, driven by increased demand in Europe and North America

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• Wall Street's median 12-month price target for Sogefi SpA is €2.50, about 34.4% above its October 23 closing price of €1.86

• The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 9 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)