TI Fluid Systems PLC (LSE:TIFS), a global leader in automotive fluid systems, saw its shares surge 11% higher in early trade on Wednesday after the first quarter got off to what CEO Hans Dieltjens described as an “encouraging start”.
Revenue for the three months ended 31 March 2023 was €869.8mln, a 15.2% year-on-year increase.
The growth was driven by both segments and all operating regions.
With light vehicle production volumes rising 5.7%, revenue outperformance was 920 basis points (bps) ahead of expectations, supported by product launches and inflationary recoveries.
Still, the company is sticking with its guidance for the year as a whole.
“An encouraging and robust first-quarter trading update echoed the broader positive signs coming out of the sector through this reporting period,” said Peel Hunt in a note to clients.
The broker repeated its ‘buy’ recommendation and 185p share price target. In early trade, the stock was changing hands for 119.84p, up 11.4p.
Of the eight banks and brokerages logged as following TI, only three are positive. That said, the consensus price target is 146p, a 35% premium to the current price.