(Boursier.com) — Stifel returns to Renault after a meeting with the financial director and the head of investor relations after the CMD dedicated to Ampère. The broker explains that the group has once again carefully highlighted the need for a separate/independent electric entity and why the latter could benefit from a stock exchange listing. The analyst believes that the business model (especially the cost reduction trajectory) appears to have been well received, although some reservations remain regarding the (Chinese) competitive environment.
As for the idea of an IPO, it has yet to gain traction with investors, but Stifel believes the company is right to point out that proceeds from such a deal would cover the initial cash burn without calling on investors. Renault resources; and that the possible IPO would offer investors another leg with a technological flavor (Ampère) while the parent company (Renault) should remain a solid “yielding asset”. Finally, the near-term tone of the FY2023 guidance appeared constructive (upscale?) and 2024 earnings should continue to improve relative to the current fiscal year.
Stifel therefore logically remains ‘purchase’ on the stock, aiming for 51 euros.
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