RENAULT : Oddo BHF confirms its recommendation on the share
March 25, 2024 at 10:37 am EDT
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Oddo BHF maintains its 'outperform' rating on Renault shares, with an unchanged target price of 55 euros.
According to the analyst, Ampère provides Renault with major short-term advantages to counter the undeniably less favorable BEV momentum in Europe, and, in the medium term, a relevant positioning and a coherent strategy to assert itself as one of the European leaders in the segment.
The broker reports that Renault's CFO highlights Ampère's differentiating profile and strengths. Among these, agility and flexibility are seen as key to achieving the goal of a 40% cost reduction by the next generation.
Oddo BHF highlights 'a very fruitful partnership with Google' via the future Software Defined Vehicle solution currently under development (start-up in 2026 with Flexivan), which will also build on the partnership with Qualcomm.
If this solution is to equip the entire next generation of Ampère vehicles (2027+), it could also be offered by Google to third-party manufacturers later on, with potential royalties for Renault' concludes the research consultancy.
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Renault is one of the world's leading automobile constructors. Net sales break down by activity as follows:
- sale of vehicles (91.9%): 2.2 million passenger and commercial vehicles sold in 2023, distributed by brand between Renault (1,548,748), Dacia (658,321), Renault Korea Motors (21,980), Alpine (4,328) and other (1,968);
- services (8.1%): financing services for vehicle sales (purchasing, renting, leasing, etc.; RCI Banque), related services (maintenance, warranty extension, assistance, etc.) and mobility services.
At the end of 2023, the group had 38 industrial sites worldwide.
Net sales are distributed geographically as follows: France (29.2%), Europe (49.3%), Americas (8.7%), Eurasia (6.1%), Asia/Pacific (3.5%), Africa and Middle East (3.2%).