Peugeot SA Price Target cut to €14 from €17 at UBS, reiterates Buy rating
Firm decreases earnings estimates substantially for this year to account for the €1.1bn FX-related write-down and lower than expected production rate (-2% for 2013 vs modest growth). Firm also cuts EPS -4% in 2014 and -15% from 2015 onwards, with lower depreciation partly offsetting the reduction in GM alliance synergies and higher cash absorption from working capital. Net debt forecast increases by €600m to €4.34bn for 2013 and by €476m to €4.26bn in 2014. In light of recent data from ACEA, firm estimates Peugeot sales volume will be down -5.5% this year.