(News Bulletin 247) – Stifel maintains its buy rating on Renault shares, with an unchanged price target of 48 euros.
While the group has lifted its forecast for the financial year, the analyst estimates that operating profit should be boosted by ‘at least a quarter’ thanks to the quality of sales (volume/price/mix) and a less unfavorable cost base (raw material/transport/energy/remuneration granted to suppliers).
Thus, “Renault’s profitability could reach new heights in 2023 and exceed the previous record set in … 1999 (before the Nissan era)”, advances Stifel.
The Losange now anticipates: (1) a group margin of between 7% and 8% (versus greater than or equal to 6% previously) and (2) an automotive operational FCF of more than 2.5 billion euros (against more than 2 billion euros previously).
According to Stifel, given the pace of product launches in 2024 (14 new cars) and 2025 (five new cars) as well as the work on costs, ‘the financial statements in the long run could turn out to be even more attractive than in 2023’.
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