HSBC maintains its buy raing on the Renault stock with a target price of €47, implying around 34% upside potential.
The analyst believes that the light commercial vehicle (LCV) market remains challenging, with aggressive competition.
The forecast was for no improvement in market conditions for LCVs. LCVs will be slightly below market levels in the third quarter, but the goal is to catch up, the broker notes.
Electric LCVs have benefited from the largest discounts; their evolution by 2026 depends on EU decisions regarding CO2 emissions regulations for LCVs, HSBC adds.
Renault is one of the world's leading automobile constructors. Net sales break down by activity as follows:
- sale of vehicles (89.9%): 2,264,815 passenger and commercial vehicles sold in 2024, distributed by brand between Renault (1,577,351), Dacia (676,340), Renault Korea Motors (6,539) and Alpine (4,855);
- services (10.2%): 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 2024, the group had 25 industrial sites worldwide.
Net sales are distributed geographically as follows: France (29.9%), Europe (49.8%), Americas (8.3%), Eurasia (5.1%), Asia/Pacific (3.9%), Africa and Middle East (3%).
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