Renault: Invest Securities still a buyer; trims target price

(CercleFinance.com) - Invest Securities reiterates its "buy" rating on Renault, which it is keeping in its list of best picks, although has cut its target price for the share from 127 euros to 113 euros, after the car maker published interim results that were largely as expected.


While speculation on forthcoming changes in the Renault-Nissan alliance seems to have tailed off for the moment, the broker points out a sharp increase in Avtovaz's EBITA, with it maintaining its 2018 guidance, with the global car market estimated to grow by +2.5% to +3%.

The broker has marginally adjusted its EPS estimates by -3.8%/+0.8%/+1.4%, with its target price for the share impacted by falling prices in the sector. However, in no way do this offset the undervaluation of Renault's automotive businesses.



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