Renault: Invest Securities maintains buy rating
(CercleFinance.com) - Invest Securities believes that Reanualt published Q3 2020 sales that reflected a significant recovery, even though they are still down 8.
2% (-3.2% excluding FX factors) and below their analysts' expectation (-3.8%).
The monthly momentum of the past quarter is strong, with September sales up 7.5% in Europe, which suggests that this positive trend will continue in Q4, the broker said.
FCF generation, which is picking up, has been confirmed as "positive" by the group in H2 2020. The broker therefore maintains its estimates, with 2020/21/22e EPS of respectively -12.7 euros/2.5 euros/5.6 euros, Invest Securities adds.
The broker has nudged up its target price a fraction to 32.3 euros, vs. 32.1 euros. Renault remains in its best pick (IS) selection, with it maintaining a buy rating on the share.
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