Renault: Oddo confirms rating and target price
(CercleFinance.com) - Oddo believes that the plan to save two billion euros by 2022 appears to be rational, although it probably comes late (especially as it is currently just at a project stage) and perhaps insufficient (envelope similar to February, i.
e. before the covid-19 pandemic).
The broker confirms its Neutral rating on the share, along with its target price of 20 euros, saying that catalysts are missing in the near term.
It says that the next few months are going to be very difficult (particularly in terms of cash burn), and therefore still prefers Volkswagen (Buy) and Peugeot (Buy), which offer more guarantees and have a much more attractive profile in the short/medium term, analysts say.
Taking into account the expected increase in D&A (expected at 700 million-800 million euros), analysts therefore estimate the net gain of such measures at about 600 million euros in EBIT by 2022 (i.e. c. 100-120 bp in terms of OM), Oddo adds.
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