Renault: Stifel raises target price

(CercleFinance.com) - Stifel reaffirms its 'buy' recommendation on Renault shares and raises its target price from E53 to E56, after adjusting its forecasts for the car maker following its annual publication and a recent contact at the Geneva Motor Show.


The broker reduces its EPS sequence by around 5% on average in 2024-25, but this is more than offset in valuation terms by improved free cash flow (+4%) and a more robust payout ratio.

Renault should be one of the few car makers to see its margins increase in 2024 (in euros and as a percentage) and probably in 2025, without sacrificing its FCF generation, the broker adds.


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