Renault: still a buyer, Oddo BHF targets 100 euros
(CercleFinance.com) - This morning Broker Oddo BHF has confirmed its buy rating on the Renault share, while with Nissan and Mitsubishi Motors, the French car maker wants to give a boost to the Alliance.
The broker's target price of 100 euros suggests huge upside potential of 70%.
Yesterday, the three groups announced the formation - in place of the old bodies - of an "operational board" for the Alliance which is chaired by Jean-Dominique Senard, while reaffirming their commitment to the latter. This board will become the only entity that is responsible for both operational matters and governance of the Alliance. Decisions will be made in a consensual manner, analysts said, adding that the Alliance's speech is aimed at, and should actually reassure, investors, who were worried about the future of the Alliance and the ability of partners to commit to new joint projects.
In short, this agreement, which comes less than two months after the appointment of Jean-Dominique Senard at the helm of Renault, marks a first step. It aims to put the Alliance in working order, Oddo BHF adds, which hails the diplomatic talents of Renault's new chairman. However, the Renault share is still trading on the basis of a negative enterprise value of 700 million euros and an implied value of core assets of under two billion euros.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
The broker's target price of 100 euros suggests huge upside potential of 70%.
Yesterday, the three groups announced the formation - in place of the old bodies - of an "operational board" for the Alliance which is chaired by Jean-Dominique Senard, while reaffirming their commitment to the latter. This board will become the only entity that is responsible for both operational matters and governance of the Alliance. Decisions will be made in a consensual manner, analysts said, adding that the Alliance's speech is aimed at, and should actually reassure, investors, who were worried about the future of the Alliance and the ability of partners to commit to new joint projects.
In short, this agreement, which comes less than two months after the appointment of Jean-Dominique Senard at the helm of Renault, marks a first step. It aims to put the Alliance in working order, Oddo BHF adds, which hails the diplomatic talents of Renault's new chairman. However, the Renault share is still trading on the basis of a negative enterprise value of 700 million euros and an implied value of core assets of under two billion euros.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.