Renault: leading the CAC, UBS raises its recommendation
At around 10.10 a.m., the automaker's shares were up by more than 2.2%, the biggest gainer on the CAC 40 and the SBF 120 indexes.
In a note released in the morning, UBS said it had changed its opinion to 'neutral' from 'sell', with its price target raised from 31 to 50 euros.
The broker explains that, following the cancellation of the Ampere IPO, the sale of the Nissan stake and the investigation by Brussels into Chinese electric cars, it is considering "attractive" redistributions of cash to shareholders.
According to his calculations, Renault should be one of the few groups in the sector to increase its profit margins this year, and could end the year with a net cash position representing close to 40% of its market capitalization.
The only reservation, according to the broker, is that Ampere - which is not aiming for operating breakeven until next year - may put the brakes on possible returns to shareholders.
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