Renault: Oddo says leeway is 'becoming limited'
(CercleFinance.com) - An analyst at Oddo BHF today maintains a "buy" rating on the Renault stock, coupled with a target price of 100 euros, despite December sales figures falling short of its expectations.
The analyst said that unsurprisingly, December sales are down, with a high comparison basis in 2017 - particularly in France, although they are below our expectations of 25k units (including -8k for EU and -13k for Eurasia). The analyst estimates the impact on sales at 300 million euros, with a 60 million euro impact on the group's operating profit.
The broker said that the Renault story is now not dependent on a slight shortfall in vehicle sales at the end of the year. Note that an operating margin of over 6% would reassure investors at a difficult time regarding the governance of the Alliance. Our estimates remain in line with the group's guidance, although leeway is now becoming narrow.
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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 analyst said that unsurprisingly, December sales are down, with a high comparison basis in 2017 - particularly in France, although they are below our expectations of 25k units (including -8k for EU and -13k for Eurasia). The analyst estimates the impact on sales at 300 million euros, with a 60 million euro impact on the group's operating profit.
The broker said that the Renault story is now not dependent on a slight shortfall in vehicle sales at the end of the year. Note that an operating margin of over 6% would reassure investors at a difficult time regarding the governance of the Alliance. Our estimates remain in line with the group's guidance, although leeway is now becoming narrow.
Copyright (c) 2019 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.