Renault: Credit Suisse upgrades 'sell' rating
(CercleFinance.com) - Too much is too much! According to Credit Suisse, the European automobile sector has been excessively punished in the stockmarket.
Analysts have also upgraded their sell rating ("underperform") on the Renault share, which they now rate as “neutral”.
There are certainly worrying factors, be they the risks and costs of electric vehicles, if not autonomous ones, and more recently US customs duties, FX and raw materials factors, and new protocols for vehicle emission test (WLTP). However, lately, FX conditions are becoming more favourable for the sector, with the dollar's depreciation, and the consequences of WLTP seeming to be "well understood". Finally, the meeting between Donald Trump and Jean-Claude Juncker was "positive". In short, it appears that the sector could well pick up again.
In the case of Renault, Credit Suisse notes that the stock has underperformed the market trend since the start of 2018 - especially as expectations of a merger with Nissan and the contribution of emerging countries have been reduced - maybe a little too much. Even though the broker's analysts still prefer Volkswagen and BMW in the sector.
Copyright (c) 2018 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.
Analysts have also upgraded their sell rating ("underperform") on the Renault share, which they now rate as “neutral”.
There are certainly worrying factors, be they the risks and costs of electric vehicles, if not autonomous ones, and more recently US customs duties, FX and raw materials factors, and new protocols for vehicle emission test (WLTP). However, lately, FX conditions are becoming more favourable for the sector, with the dollar's depreciation, and the consequences of WLTP seeming to be "well understood". Finally, the meeting between Donald Trump and Jean-Claude Juncker was "positive". In short, it appears that the sector could well pick up again.
In the case of Renault, Credit Suisse notes that the stock has underperformed the market trend since the start of 2018 - especially as expectations of a merger with Nissan and the contribution of emerging countries have been reduced - maybe a little too much. Even though the broker's analysts still prefer Volkswagen and BMW in the sector.
Copyright (c) 2018 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.