Renault: in good shape!

Renault: in good shape!

( – Leading CAC40, Renault it outperformed the market at the beginning of the week with a gain of 4% to 29.9 euros. The carmaker, which has posted a fourth consecutive period of strong growth, remains buoyed by its excellent half-year publication and raised its annual operating and free cash flow targets.

The diamond group, which is undergoing a sensitive restructuring and strategic repositioning exercise, announced on Friday that it is aiming for a top rate of 5% in 2022, against around 3% so far, with higher free cash flow from the auto industry. . up to 1.5 billion euros, against the previous positive.

In addition, while the registration of new cars in France decreased by 7.06% annually in July, those of the Renault group (Renault, Dacia and Alpine brands) increased by 10.84%. According to data from the Car Forum, 107,547 private cars were registered in France last month.

On the analyst side, Credit Suisse raised its target from 25 to 30 euros while remaining ‘neutral’ while Invest Securities (‘buy’) raised its target from 45.8 to 55 euros. The agency notes that the interim publication largely exceeded expectations while the guidance of 2022 being released after being revised downwards at the end of the first quarter. The speech is now highly optimistic for the second half, supported by new models and, in the run-up to the autumn CMD, on the organization of Renault’s electric activities with or without the active participation of Nissan.

Oddo BHF for its part values ​​the name from 30 to 35 euros but remains ‘neutral’. If, on the one hand, the recovery story is more and more persuasive with the management that largely fulfills its promises (it is admittedly supported by the “unique” speed of the cars), if it is a matter of the integration of marketing policies, product plans or cost reductions, on the other hand, the economic environment is deteriorating, especially in Europe where the group is overexposed (in absolute and relative terms). This is what drives the analyst to favor players with greater operational and financial strength and more diversification such as Stellantis, whose valuation is (surprisingly) relatively close.