(CercleFinance.com) – Berenberg on Wednesday raised its recommendation on Renault shares, which thus goes from ‘hold’ to ‘buy’ with a price target raised from 27 to 34 euros.
While the analyst acknowledges that the automaker is not really in a position to control the consequences of the European energy crisis on the economic situation, he believes that it is quite capable of creating value for its shareholders by implementing specific initiatives at group level.
“Two years of flawless execution have finally caught the attention of the most skeptical, even if this element has yet to be reflected in the intrinsic value of the action”, underlines Berenberg.
‘Given the continued flawless execution of the Renaulution plan, as demonstrated by the strong first half results, we believe the stock price should benefit from the sequential improvement in volumes going forward and a relatively resilient product mix,” concludes the intermediary.