Renault: Berenberg reiterates buy rating
(CercleFinance.com) - On Friday, Berenberg reiterated its buy rating on Renault share, along with its target price of E47, following its 7% fall after the group announced its Q3 sales.
The broker attributed this downturn - which it believes is largely exaggerated - to the destocking and inventory rebuilding issues affecting dealerships, factors which it believes were well known to the market.
The analyst also points to a less favourable "mix" in terms of sales (and not profitability), a momentum he deems temporary.
From the publication Berenberg prefers to retain the solidity of the car maker's prices and - rare within the sector - confirmation of a trajectory of improved profitability for H2, as well as the prospect of "resilient" margins in 2024.
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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 attributed this downturn - which it believes is largely exaggerated - to the destocking and inventory rebuilding issues affecting dealerships, factors which it believes were well known to the market.
The analyst also points to a less favourable "mix" in terms of sales (and not profitability), a momentum he deems temporary.
From the publication Berenberg prefers to retain the solidity of the car maker's prices and - rare within the sector - confirmation of a trajectory of improved profitability for H2, as well as the prospect of "resilient" margins in 2024.
Copyright (c) 2023 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.