Renault: Oddo still on hold after Q3 results

(CercleFinance.com) - On Friday, Renault reported a 13% drop in revenues for Q3 2021, which reached 8,987 million euros - however, according to Oddo, this was in line with expectations.


The analyst says that beyond that, the group confirmed the deterioration seen in market conditions in H2, given the shortage of semiconductors and cost inflation in different areas. However, it managed to reassure by maintaining its profitability target for the half-year, thereby confirming, amongst other things, progress in its cost reduction plan.

All said, Oddo confirms its Neutral rating on the stock, with a target price of 40 euros (current price: 31 euros, -0.4%), saying that while this publication is reassuring regarding the group's ability to manage conditions in the near term, it does not provide any significant new details as to the recovery to come in 2022/2023 or beyond (new 2022 products, cost reductions still to come, structural issues, Nissan, etc.).


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