Q3 Earnings Alert! Plan early for this week’s stock reports with all key data in 1 placeSee list

HSBC raises Renault price target as shares rally 40% this year

EditorEmilio Ghigini
Published 12/06/2024, 10:54 pm
RENA
-

On Wednesday, HSBC updated its outlook on Renault SA (OTC:RNLSY) (RNO:FP) (OTC: RNSDF) shares, elevating the price target to €63.00, an increase from the previous €57.00, while reiterating a Buy rating on the stock.

This adjustment comes as Renault (EPA:RENA)'s stock has seen a significant rise this year, boasting a 40% increase, which notably surpasses the performance of the broader automotive sector by 34%.

The financial institution's analysis suggests that despite the impressive growth already witnessed this year, there remains room for further appreciation in Renault's share value. HSBC's revised valuation is based on a sum-of-the-parts methodology, where higher multiples have been applied to reflect the company's current market position and outlook.

HSBC's positive stance on Renault is partly due to the company's minimal exposure to the Chinese market, which is considered an advantage in the current economic climate. Additionally, Renault is perceived to have lower pricing risks than previously estimated. These factors contribute to the belief that the company's valuation multiples should be increased.

The bank also anticipates that there could be consensus upgrades and a continued enhancement of market sentiment towards Renault. Nevertheless, HSBC cautions that there are risks involved, including the possibility that new product launches may not be well-received or that there could be a downturn in the industry's pricing discipline, which could adversely affect Renault's performance.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.