Renault: Invest Securities raises target price.
(CercleFinance.com) - Reacting to last weekend's publication of the "Drive the future" plan, on Monday Invest Securities raised its target price for the Renault stock from 117 euros to 124 euros, while confirming its "buy" rating and maintaining the car maker in its best pick list.
The broker considers the aforementioned plan "both more prudent and more ambitious than the previous one," which serves to "reinforces its feeling that the targets set for 2022 will be reached before this date, as was the case for “Drive the change” plan ".
With sales of 5 million vehicles in 2022 (reminder: 3.5 million in 2016) and turnover of 70 billion euros (+25 billion euros compared to 2016), the group's EBITA margin should rise to 7% (6.4% in 2016, 6.2% in H1), "a cautious target, albeit with a guaranteed level of 5% in all market situations (apart from a serious crisis), suggesting that cyclical lows could be profitable at Renault," Invest Securities says.
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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.
The broker considers the aforementioned plan "both more prudent and more ambitious than the previous one," which serves to "reinforces its feeling that the targets set for 2022 will be reached before this date, as was the case for “Drive the change” plan ".
With sales of 5 million vehicles in 2022 (reminder: 3.5 million in 2016) and turnover of 70 billion euros (+25 billion euros compared to 2016), the group's EBITA margin should rise to 7% (6.4% in 2016, 6.2% in H1), "a cautious target, albeit with a guaranteed level of 5% in all market situations (apart from a serious crisis), suggesting that cyclical lows could be profitable at Renault," Invest Securities says.
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.