Renault: Bernstein upgrades shares to 'market-perform'.
(CercleFinance.com) - Sanford C.
Bernstein has upgraded its rating on Renault to "market-perform", saying that it lost confidence in its previous "underperform" stance, even after the stock has underperformed so far this year.
As Renault's sales growth has been "impressively strong" this year with the carmaker gaining market share in Europe, the broker is "increasingly convinced" that the company will not just beat its numbers, but that it will also exceed the consensus, prompting it to upgrade its estimates.
However, Bernstein acknowledges that the Russian recovery is still not proven and while the broker says that a Nissan merger would be welcome, Bernstein thinks that there is a risk that an alternative and complicated route could be chosen, such as Nissan buying the French State's stake in the company.
Copyright (c) 2017 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.