PARIS, April 26 (Reuters) - Shares in French car parts company Valeo rose more than 3 percent in early trade on Friday, as investors and analysts welcomed the company’s statement that its performance would improve in the second half of the year.
In a trading update late on Thursday, the company reported a dip in first quarter sales and forecast volatile global automotive production, but said a decline in the first half would be followed by an improvement in the second half.
Valeo added it was sticking to its targets, namely for having a stronger market outperformance.
“Like most peers, Valeo expects a relatively stronger H2 but in their case, benefits from restructuring starting in H1 and a pick-up in organic growth gives the guidance credibility,” brokerage Jefferies said in a note, maintaining a “hold” rating on Valeo shares.
Valeo shares were up 3.4 percent in early trade.
Despite a modest rally in recent weeks, the company’s shares are down more than 40 percent over the past 12 months. (Reporting by Sudip Kar-Gupta; Editing by Susan Fenton)