Peugeot SA: SG does not believe in a 'dieselgate'.
(CercleFinance.com) - Société Générale (SG) yesterday confirmed its buy rating on the share of carmaker Peugeot SA (PSA Group).
Analysts are not worried about recent reports in the press, and believe that no convincing evidence (is) expected in the investigation into diesel engine emissions. SG therefore also maintains its 12-month target price of 23 euros.
Since 2016, the General Directorate for Competition Policy, Consumer Affairs and Fraud Control (DGCCRF) has been investigating Renault, Volkswagen, Fiat Chrysler and Peugeot SA in the wake of the “dieselgate” scandal. Last week, Le Monde said that this procedure would have concluded that two million diesel vehicles of Peugeot SA were equipped with illegal software that is intended to foil pollution controls. The group denies this categorically.
However, Société Générale does not believe news in le Monde: “NOx compliance in Europe has been a regulatory grey area for years. We doubt that PSA used specific software to cheat laboratory testing.”
" PSA has also been a leader in the fitment of NOx-reducing SCR technology, well ahead of its mandated requirement under European law, which hardly suggests a corporate culture bent on cheating in our view," SG adds in its report.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
Analysts are not worried about recent reports in the press, and believe that no convincing evidence (is) expected in the investigation into diesel engine emissions. SG therefore also maintains its 12-month target price of 23 euros.
Since 2016, the General Directorate for Competition Policy, Consumer Affairs and Fraud Control (DGCCRF) has been investigating Renault, Volkswagen, Fiat Chrysler and Peugeot SA in the wake of the “dieselgate” scandal. Last week, Le Monde said that this procedure would have concluded that two million diesel vehicles of Peugeot SA were equipped with illegal software that is intended to foil pollution controls. The group denies this categorically.
However, Société Générale does not believe news in le Monde: “NOx compliance in Europe has been a regulatory grey area for years. We doubt that PSA used specific software to cheat laboratory testing.”
" PSA has also been a leader in the fitment of NOx-reducing SCR technology, well ahead of its mandated requirement under European law, which hardly suggests a corporate culture bent on cheating in our view," SG adds in its report.
Copyright (c) 2017 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.