Renault: a fine performance in 2024

(CercleFinance.com) - The stock has risen by over +27% since January 1, 2024, and is one of the best performers on the CAC40.


Oddo BHF has reaffirmed its 'outperform' rating and €60 price target on Renault, following the announcement by Honda and Nissan of a memorandum of understanding (MoU) for their merger, which could also include Mitsubishi Motors.

While the read-across for Renault remains limited at this stage, the research firm believes that the French carmaker 'should play an important role in the discussions, both operationally and, more importantly, from a shareholder point of view'.

Renault's stake in Nissan still seems more monetizable today with this agreement than before, and the 'better' perception of Nissan in the short term reinforces our view of a favorable scenario for Renault", it believes.

HSBC, for its part, rates Renault as its favorite stock in the European automotive sector.

In a sector study, HSBC analysts warn that European carmakers will face many risks in 2025, but 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 strengthen the sector's health.

In this light, HSBC says it prefers Renault shares, which it associates with a lower level of risk.

Renault's limited exposure to China and the USA is a godsend for 2025', said the analysts in their note.

'We believe the group has better price resilience than the market thinks, and its CO2 emissions situation, though seemingly fragile, should improve significantly', added HSBC.

Copyright (c) 2024 CercleFinance.com. All rights reserved.