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Renault: Oddo says speculation, is the 'icing on the cake'

(CercleFinance.com) - Broker Oddo BHF has re-examined the Renault stock, while comments in the press about a possible merger with Nissan, Renault's Japanese partner, maintain speculation around the group.

Sticking to their buy rating on the French automobile stock, analysts believe that this would just be the "icing on the cake". In the meantime, their analysts also maintain a target price of 120 euros for the share.

Yesterday, news agencies reported that Renault, which owns 43.4% of Nissan, is in talks about a merger with the latter, in concert with the French State. According to this scenario, Paris would sell its 15% stake in Renault's capital to the Japanese group, which already holds 15% of Renault's shares, albeit without voting rights. For about four billion euros, Nissan would increase its stake in Renault to 30% and could also exercise the corresponding votes.

Although this seemed unlikely three years ago, this deal has become quite possible, Oddo BHF believes: the head of both groups, Carlos Ghosn seems to have been commissioned to make the Alliance between both carmakers permanent. This is easier now that Renault's share price has recovered relative to that of Nissan.

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