Deutsche Bank downgrades TI Fluid Systems on valuation grounds

DB said the company reported a decent second half and delivered in line with market expectations. Guidance also met market expectations and the bank said it does not see any need for consensus moves on the back of the release.

"Moreover the company has made decent progress on moving into EV platforms with close to 50% of 2020 business wins being for electrified vehicles and also being present in the majority of key BEV launches in 2020-2022.

"As the ability to move to alternative drivetrains was always a key discussion point on the stock, we see the company’s disclosure as encouraging, highlighting successful efforts to gain share in platforms of the future."

DB said it expects more on this at the capital markets day in April, which will likely be welcomed by the market.

"That said, the shares have had a good run into 2021, having outperformed peers as well as the index and surpassing our unchanged target price of 280p."