HSBC announced on Friday that it had raised its price target for Renault from 44 to 47 euros, while renewing its buy recommendation on the stock.

In a research note, the broker emphasizes that the announcement of a 2023 dividend payment 35% higher than market expectations testifies to the management team's confidence in the Group's ability to generate cash.

He adds that the operating margin target announced by Renault for this year is also above consensus forecasts.

Renault is one of the few carmakers for which we see a favorable trajectory in terms of margins", emphasizes the broker.

HSBC notes in particular that the group has kept its word on pricing and financial discipline, which it considers a good omen at a time when the industry is preparing to enter a phase of cost-cutting.

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