Citigroup cuts Ayvens to 'neutral', citing balanced risks

** Citigroup downgrades Ayvens AYV to 'neutral' from 'buy', citing a more balanced risk-reward as shares of the French car leasing company have surged nearly 60% since late 2024

** Ayvens delivered "robust" Q2 results, with stable leasing and services margins and stronger-than-expected used car sales, and appears on track to meet most 2026 targets, the broker says

** But the group faces weaker demand for cars across Europe, persistent losses on used battery electric vehicles, particularly in the UK, and uncertainty in the French credit market, which Citi says could impact its performance

** While Ayvens targets cost and integration synergies of 350 million euros ($409.75 million) in 2025 and of 440 million euros in 2026, Citi warns that a faster expansion could strain profit margins

** Shares of Ayvens slip 3.4% to 9.38 euros

($1 = 0.8542 euros)