TI Fluid Systems tumbles after Jefferies downgrade

TI Fluid Systems tumbled on Thursday after Jefferies downgraded the shares to ‘hold’ from ‘buy’ and slashed the price target to 195p from 350p.

Jefferies said conditions faced by the automotive parts maker were among the most difficult in its coverage.

The bank said that while the long-term equity story remains attractive, 2022 will be "another highly challenging year".

Jefferies also said the company’s ability to recover raw material and inflationary costs from customers in FY22 is lower than expected, while expectations on electrification upside "may be too high".

At 0925 BST, the shares were down 11% at 161.20p.