Peugeot: Oddo confirms rating after support plan

(CercleFinance.com) - Oddo believes that the support plan presented yesterday finally contains very few new elements.


Several limitations (duration, volumes) lead Oddo to believe that it will above all facilitate stock reductions that are currently excessive, although the revival of production will remain dependent on an improvement in economic conditions, which is still uncertain (or else an extension of the plan presented yesterday), analysts say.

Oddo considers that the reinforcement of the electrical support component is obviously welcome (notably regarding fleets and rechargeable hybrids), although its short duration (until the end of 2020) reduces its scope (while creating risks regarding car makers' 2021 targets).

Oddo says that the main beneficiaries, i.e. Peugeot, Renault and Volkswagen, should benefit from these measures in the coming months, especially since they will undoubtedly be partly replicated in other countries (Germany very soon), and even elsewhere in Europe where a global recovery plan is expected in due course (France "only represents" 17% of Renault's volumes and 24% of PSA's volumes), Oddo says.

The broker maintains its buy ratings on the Peugeot and Volkswagen shares.



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