Morgan Stanley on Thursday renewed its 'Overweight' recommendation on Renault, while raising its price target for the stock from €44 to €59.
In a research note, the analyst looks back on the carmaker's recent bullish run, claiming that he still sees potential value at current levels.
He adds that the group, like Stellantis, offers shareholders an attractive return, thanks to a solid dividend which he believes limits the share's downward potential.
MS adds that it appreciates the manufacturer's geographic positioning, and particularly its limited exposure to China, which protects it against too much pressure on prices this year.
Given the share's strong rise since the beginning of the year, the intermediary warns, however, that profit-taking remains a possibility, while cautioning that high interest rates could also end up weighing on demand.
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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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