over 2 years ago • 2 mins
A long-term investment in Renault (ticker: RNO) with a target of 45 euros, 35% above the current price.
This French automotive giant is leading the electric vehicle (EV) sales in Europe. It also owns 43% of Nissan and has an internal bank, RCI Banque, worth approximately $7.5 billion.
The European Central Bank has prohibited distribution of capital to shareholders due to COVID-19 uncertainty and RCI intends to pay out approximately $1.1 billion when allowed. Renault is predicting the sales of electric and hybrid vehicles will double in 2021, reaching 350,000 vehicles. The expected annual growth rate through 2025 is close to 10%.
Renault is currently suffering from high costs and a lot hinges on the company’s ability to implement the turnaround plan, as well as lack of presence in China and the US.
You can mitigate this by investing in a car manufacturer with good value, strong presence, and investment in EV products in the Chinese and US markets.
Has Niko convinced you? Send us your thoughts on his Renault pitch here.
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