Renault: Oddo cuts estimates for2019 and 2020
(CercleFinance.com) - Renault has announced Q1 2019 sales of 12,527 million euros, down 4.
8% on a reported basis and down 2.7% like-for-like. This is broadly in line with Oddo's estimates (-4.5%) and the consensus (-5.1%). The decline came from Renault Automobile (-6.3% to 10,916 million euros), the broker pointed out.
Oddo adds that the decline in Renault Auto's sales (-6.3%) mainly stems from the volume effect (-4.7 points) relating to the drop in volumes (-5.6% but -1.6% at the consolidated level, i.e. excluding fhe Chinese JV) and above all, a reductions in inventories at dealers..
Following this announcement, the broker confirms its buy rating on the stock, along with its target price of 100 euros.
Renault has confirmed its annual targets of higher revenues (at constant exchange rates and consolidation scope), a group operating margin of around 6% and positive operating free cash flow of at its automobile division.
At the end of Q1, Oddo is reducing its 2019 and 2020 estimates by -19% and -13%, respectively, mainly to take into account the consequences of Nissan's profit warning, and - to a lesser extent (-100 million euros, i.e. -3.3%) - following a reduction in the broker's forecast for Renault's operating profit.
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.
8% on a reported basis and down 2.7% like-for-like. This is broadly in line with Oddo's estimates (-4.5%) and the consensus (-5.1%). The decline came from Renault Automobile (-6.3% to 10,916 million euros), the broker pointed out.
Oddo adds that the decline in Renault Auto's sales (-6.3%) mainly stems from the volume effect (-4.7 points) relating to the drop in volumes (-5.6% but -1.6% at the consolidated level, i.e. excluding fhe Chinese JV) and above all, a reductions in inventories at dealers..
Following this announcement, the broker confirms its buy rating on the stock, along with its target price of 100 euros.
Renault has confirmed its annual targets of higher revenues (at constant exchange rates and consolidation scope), a group operating margin of around 6% and positive operating free cash flow of at its automobile division.
At the end of Q1, Oddo is reducing its 2019 and 2020 estimates by -19% and -13%, respectively, mainly to take into account the consequences of Nissan's profit warning, and - to a lesser extent (-100 million euros, i.e. -3.3%) - following a reduction in the broker's forecast for Renault's operating profit.
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.