Renault: Berenberg starts to track - on 'hold'
(CercleFinance.com) - Berenberg has begun monitoring Renault's shares on Tuesday with a "hold" recommendation and a target price of 27 euros.
In a broad study of European carmakers, the analyst explains that the company is currently suffering from limited visibility on key issues such as its withdrawal from Russia, inflationary tensions, confinements in China and supply difficulties.
The broker believes that all these issues overshadow, the "obvious" structural progress made in the implementation of the "Renaulution" strategic plan.
While it notes that the unfavourable economic situation does not spare any group in the sector, Berenberg underlines that Renault appears more vulnerable due to its more fragile financial situation (both in terms of results and cash flow) and its heavy dependence on the European market, in which volumes are struggling to recover.
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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.
In a broad study of European carmakers, the analyst explains that the company is currently suffering from limited visibility on key issues such as its withdrawal from Russia, inflationary tensions, confinements in China and supply difficulties.
The broker believes that all these issues overshadow, the "obvious" structural progress made in the implementation of the "Renaulution" strategic plan.
While it notes that the unfavourable economic situation does not spare any group in the sector, Berenberg underlines that Renault appears more vulnerable due to its more fragile financial situation (both in terms of results and cash flow) and its heavy dependence on the European market, in which volumes are struggling to recover.
Copyright (c) 2022 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.