(CercleFinance.com) – Stifel announced on Monday that it has raised its recommendation on Renault from ‘hold’ to ‘buy’ with a target price raised from 42 to 53 euros.
In a research note, the American investment bank explains that it expects the automaker to reach the objectives of its ‘Renaulution’ plan three years ahead of schedule, helped by the ongoing recovery of the sector.
The intermediary believes that the objectives set by the diamond firm for 2023/2025 now seem too timid and establishes, as far as it is concerned, forecasts 39% to 71% higher than the consensus estimates.
Stifel predicts that the EPS of the French group will quadruple to reach 13 euros per title in 2023, thanks to the combined effect of the recovery of its market and the contribution of Nissan.
The St. Louis-based financial services company is even going so far as to expect Renault to write off all of its debt by the end of the year due to the strength of its cash flow and the dividends received on its holdings.
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