Renault: Invest Securities still a buyer, despite Nissan
(CercleFinance.com) - Invest Securities has re-examined the Renault share, after Nissan, the group's Japanese subsidiary, posted poor results for 2018/2019.
Taking into account more cautious forecasts for Nissan, analysts have reduced their target price for the Renault share from 105 euros to 98 euros. However, they confirm their buy rating on the share, which has upside potential of 90%.
Nissan's annual publication is to be noted for its 'guidance' unveiled for 2019/2020 and the recovery trajectory that is proposed through to 2022/2023, analysts argue, with the group's operating margin set to increase from 2% in 2019/2020 to 6% by this time. This is despite Nissan also proposing to cut its dividend (from 57 yen to 40 yen for the past year).
Invest Securities has therefore adjusted its EPS estimates for Renault, which have been capped, although maintains its dividend estimats, believing that Renault's core business will offset Nissan's weakness. Invest Securities adds that it maintains the undervalued share in its best pick list.
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.
Taking into account more cautious forecasts for Nissan, analysts have reduced their target price for the Renault share from 105 euros to 98 euros. However, they confirm their buy rating on the share, which has upside potential of 90%.
Nissan's annual publication is to be noted for its 'guidance' unveiled for 2019/2020 and the recovery trajectory that is proposed through to 2022/2023, analysts argue, with the group's operating margin set to increase from 2% in 2019/2020 to 6% by this time. This is despite Nissan also proposing to cut its dividend (from 57 yen to 40 yen for the past year).
Invest Securities has therefore adjusted its EPS estimates for Renault, which have been capped, although maintains its dividend estimats, believing that Renault's core business will offset Nissan's weakness. Invest Securities adds that it maintains the undervalued share in its best pick list.
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.