Renault: Credit Suisse has doubts on merger with Nissan
(CercleFinance.com) - This morning Credit Suisse confirms its neutral rating on the Renault share, with analysts reserved about news reports mentioning a merger between the French car maker and its "subsidiary" Nissan.
Note that the broker maintains its target price at 73 euros, which still represents upside potential of around 20%.
Analysts mainly consider Renault's "Alliance" with Nissan and Mitsubishi. "During the Q1 revenues call" of the French group, Credit Suisse reports in its note, "the financial director Clotilde Delbos repeated that the main objective was to make the Alliance irreversible because it is as necessary to Renault as to Nissan The central idea of Renault, and especially its president Jean-Dominique Senard, is to make the Alliance's decision-making process more efficient".
Trading at a very low valuation, the Renault share is set to evolve according to the news on this subject, considering that some information in the press (especially in Les Echos) have just mentioned a potential merger with Nissan. However, according to Credit Suisse, "the alliance is working efficiently in many areas already" and as a result, Renault shares are unlikely to benefit much from a merger, since most of the synergies are realised. And beware of "skepticism" about from Nissan and the Japanese government, analysts warn.
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.
Note that the broker maintains its target price at 73 euros, which still represents upside potential of around 20%.
Analysts mainly consider Renault's "Alliance" with Nissan and Mitsubishi. "During the Q1 revenues call" of the French group, Credit Suisse reports in its note, "the financial director Clotilde Delbos repeated that the main objective was to make the Alliance irreversible because it is as necessary to Renault as to Nissan The central idea of Renault, and especially its president Jean-Dominique Senard, is to make the Alliance's decision-making process more efficient".
Trading at a very low valuation, the Renault share is set to evolve according to the news on this subject, considering that some information in the press (especially in Les Echos) have just mentioned a potential merger with Nissan. However, according to Credit Suisse, "the alliance is working efficiently in many areas already" and as a result, Renault shares are unlikely to benefit much from a merger, since most of the synergies are realised. And beware of "skepticism" about from Nissan and the Japanese government, analysts warn.
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.