Renault: BarCap maintains 'equal weight' rating.

(CercleFinance.com) - Barclays Capital is maintaining its "equal weight" rating on Renault - with a target price of 88 euros - saying that the lack of visibility in the French diesel probe is "unsettling for everybody.
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The broker points out that the only way to get more visibility is now for the prosecutor to publicly decide whether or not to follow through, hence giving Renault access to the file and the opportunity to defend itself.

"This would also help Renault and investors to understand what the potential risks are," BarCap writes in a research note.

While the French economic daily Les Echos today quotes a maximum fine of 3.59 billion euros, Barclays thinks this figure makes no sense and states that a 22 million euro figure would be more realistic, adding that the fine couldn't technically exceed 1.68 billion euros.

"This is obviously detrimental to the share price, which is likely to suffer further, but more importantly this destabilizes the entire company at a time when it should fully focus on preparing the next strategic plan with challenges/opportunities associated to it that is supposed to unveiled in Fall 2017," Barclays underlines.

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