RENAULT : Berenberg reiterates buy recommendation, target 55 euros
In a research note, the analyst highlights the "uniqueness" of the subsidiary's business model, characterized by the "accessibility" of its products, but also by superior margins.
An unprecedented strategy at a time when the sector is seeking to move upmarket ('premiumization'), thanks to the pooling of parts used for each model (up to 80%), which reduces the entry ticket for its models by more than 50% and gives it a cost advantage of around 15% over its competitors, he continues.
The intermediary also refers to the brand's "particularly efficient" distribution model, which translates into costs 50% lower than the European average.
Berenberg adds that the share is currently trading on the basis of a PER of 4.4x, i.e. at a discount to the 5.2x posted by the sector.
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