(News Bulletin 247) – UBS on Friday downgraded its advice on the Renault share to ‘sell’ against ‘neutral’ so far and sharply reduced its price target, which fell from 42 to 31 euros.
In a note released this morning, analysts at the Swiss bank predict a “hard landing” for the automotive group, worrying in particular about the rise of competition from Chinese manufacturers, but also from Tesla.
“With an exposure of around 70% of its sales to Europe and a market share of 10% on the continent, Renault is one of the most vulnerable players,” writes UBS.
The Swiss establishment also doubts that the proposed IPO of the group’s electric vehicle and software subsidiary, Ampere, planned for the first half of 2024, will create a lot of value for shareholders.
Finally, UBS notes that the residual activity (‘stub’) of the group – that is to say the scope remaining post-split of Ampere – is around 16 euros, well above its averages at five and 20 years old.
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