Peugeot: Bryan Garnier upgrades 'sell' rating

(CercleFinance.com) - In a report on the two main French car makers today, Bryan Garnier says that it has upgraded its rating on the Peugeot share from "sell" to "neutral" and has raised its corresponding fair value from 19 euros to 23 euros, saying that it is now less negative on the share, even though it prefers the group's competitor Renault.


The broker forecasts average annual EPS growth of 18% over 2018 to 2020, against 10% for its competitor Renault, which in particular it explains by the effect of the consolidation of Opel and the performance of Faurecia.

Renault remains better positioned than PSA to play the growth of emerging markets and electric battery vehicles in Europe and China, although we see less uncertainty at PSA after negotiations with Opel's German trade unions, the broker states.



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