Renault: Oddo remains neutral, raises target price
(CercleFinance.com) - Oddo believes that Renault's cost-cutting plan certainly responds to the car maker's weaknesses, although it does not seem to take sufficiently into account a lastingly deteriorated environment for sales volumes.
Therefore, the broker's 2022 estimates, which are 20% below the consensus, remain well below 2019 levels on most aggregates - particularly regarding its OM for Autos and FCF, it says.
Oddo maintains its neutral rating on the share due to a lack of catalysts in the short/medium term and risks relating to the current crisis (a very difficult Q2/H1 ahead). However, Oddo has raised its corresponding target price to 27 euros, 20 euros.
Amongst car makers, Oddo still considers Volkswagen (Buy) and Peugeot (Buy) as representing better opportunities.
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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.
Therefore, the broker's 2022 estimates, which are 20% below the consensus, remain well below 2019 levels on most aggregates - particularly regarding its OM for Autos and FCF, it says.
Oddo maintains its neutral rating on the share due to a lack of catalysts in the short/medium term and risks relating to the current crisis (a very difficult Q2/H1 ahead). However, Oddo has raised its corresponding target price to 27 euros, 20 euros.
Amongst car makers, Oddo still considers Volkswagen (Buy) and Peugeot (Buy) as representing better opportunities.
Copyright (c) 2020 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.