Oddo BHF confirms its 'outperform' rating on Renault shares, with its target price raised from ?55 to ?60.
Yesterday, Le Losange reported Q1 sales of ?11.7 billion, slightly ahead of expectations (consensus was ?11.5 billion).
Furthermore, as expected, the automaker fully confirmed its annual targets (MOP ? 7.5%, FCF Auto ? 2.5 BnE), confirming Oddo BHF's view that 'the consensus is still too cautious (MOP of 7.5%, FCF of 2.45 BnE) and should continue to be revised upwards (7.8%, 2.9 BnE)'.
The broker also highlights the share's very good performance (+33% over 3 months, +26% YTD,) and confirms its positive opinion on the stock, with a 2024 PE of just 4x and potentially 'a capacity to surprise positively from H1 onwards in terms of profitability'.
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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%).
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