Stifel reaffirms its 'buy' recommendation on Renault and raises its target price from 53 to 56 euros, after adjusting its forecasts for the automaker following its annual publication and a recent contact at the Geneva Motor Show.

The broker reduces its EPS sequence by around 5% on average in 2024-25, but this 'is more than offset in valuation terms by improved free cash flow (+4%) and a more robust payout ratio'.

Renault should be one of the few manufacturers to see its margins increase in 2024 (in euros and as a percentage) and probably in 2025, without sacrificing its FCF generation', adds Stifel in its note.

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