Renault: Oddo still on hold

(CercleFinance.com) - Oddo maintains its "neutral" rating on Renault shares, with an unchanged target price of 40 euros.


The broker has reduced its estimates for the carmaker, although they are still above expectations.

The big cut in these revisions (-61% on 2021, -25% on 2022) above all reflects the low level of results in absolute terms, as well as the importance of Nissan (the majority of the broker's revisions) in the results this year and next year and whose prospects are now increasingly cautious, the broker says.

Oddo considers that the main factor for improvement in the short term remains Nissan, but that the prospect of a rapid rebound here seems to be receding.

While the majority of global carmakers should post very high levels of profitability during the first half of the year, Renault remains behind and should still is unlikely to pick up, concludes the analyst, who prefers Stellantis, thanks to increased certainty and a more attractive valuation.

The share is currently down almost 1% in Paris, underperforming a slightly negative market (-0.25%) at the time of writing.


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