Renault : Morgan Stanley raises target price

(CercleFinance.com) - On Thursday Morgan Stanley renewed its 'Overweight' recommendation on Renault shares, while raising its target price for them from E44 to E59.


The analyst looks at the carmaker's recent bullish run, claiming that he still sees potential value at current levels.

He adds that the group, like Stellantis, offers shareholders an attractive return, thanks to a solid dividend which he believes limits the share's downside potential.

MS adds that it appreciates the manufacturer's geographic positioning, and particularly its limited exposure to China, which protects it against too much pressure on prices this year.

Given the share's strong rise since the beginning of the year, however the broker warns that profit-taking remains a possibility, while cautioning that high interest rates could also end up weighing on demand.


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