Renault: share up with HSBC hailing best car stock

(CercleFinance.com) - On Friday, Renault shares were steaming ahead in the CAC 40, following positive comments from HSBC, which ranked it as its favourite stock in Europe's automotive sector.


At 2.20 pm, the share was up 3.5%, the second-highest gain on the CAC 40, itself up 1.5%. At the same time, the STOXX Europe 600 Automobiles & Parts sector index was up 1.7%.

In a sector study, HSBC analysts warn that European automakers will face many risks in 2025, while saying that many of these have now been priced in.

In their view, their current predicament will require a massive wave of cost-cutting, which will ultimately bolster the sector's health.

With this in mind, HSBC says it prefers Renault shares, which it associates with a lower level of risk.

Renault's limited exposure to China and the US is a godsend for 2025, analysts write.

We believe that the group is more resilient in terms of pricing than the market thinks, and its CO2 emissions situation, though seemingly fragile, should improve significantly, HSBC adds.

Regarding Stellantis, it will have to demonstrate that its problems are transitory, and not structural, which could take some time, the broker warns.

Stellantis shares are currently up over 3%.


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