Renault: Barclays remains optimistic, but reduces its target

(CercleFinance.com) - On Thursday, Barclays renewed its 'overweight' recommendation on Renault, which it describes as the 'sole survivor' in the troubled automotive sector.


In a research note, the intermediary points out, however, that Renault's shares have not escaped the industry's stock market correction, shedding almost 25% over the past three months.

This decline is explained by the Group's strong European exposure, weak new car sales and the severe profit warnings issued by Volkswagen and then Stellantis.

Despite this, Barclays believes that Renault's target of an operating margin in excess of 7.5% for this year remains valid, adding that it remains just as optimistic for the years to come.

The analyst does, however, indicate that he has lowered his target price for the stock from 60 to 47.5 euros, in order to take into account the recent devaluation of the sector.

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