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Renault: brutal conditions, but value is there
The Q3 sales figures highlight how terrible the mass market environment, but unlike non-premium EU peers, Renault is surviving, which in itself is incredible. It highlights just how well...
View ArticleAutos/Steel: slowing rate of decline (cont)
With respect to comments above we turn to the Autos and their supply chain. According to a number of analysts, most Auto companies argued that Q1 WAS the trough for volumes, and H1 a low point for...
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Rational thought: Renault, K+S, PGS, Sandvik, SCOR, Aeroports de Paris & Elan
We start with Riccardo today, for in times of uncertainty his coldly rational view comes to the fore. He has been stopped out of Renault suggests selling out of all Auto stocks generally (NB the move...
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Improvement in Europe few seem to believe
In what is perhaps the clearest signal yet of the market’s ignorance towards change in Europe, watch this interview between CNBC’s Maria Bartiromo and the co-CEO of SAP: Listen from 2:20 onwards… In it...
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The European PMI has broken up above 50 for the first time since October 2009
The best PMI reading for one-and-a-half years provides encouraging evidence the Euro area could pull out of its recession in the third quarter. The revival is being led by a broad-based upturn in...
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Volkswagen & Autos: German residual car values rising strongly
This chart was sent to us by a client (you can see on the web, although it has not updated for December yet). We think it is very supportive for the buy-case on Volkswagen (& Porsche) and the...
View ArticleFrance: recovery, reform and going Green? Stay long
The euro area continued to enjoy its strongest spell of growth since the first half of 2011 in March with flash PMIs last week registering expansion for the ninth consecutive month, with forward...
View ArticleFrance becoming more competitive
Renault French labour costs have dropped more than 4% since an agreement on increased working time was signed a year ago (Les Echos). To remain competitive and to prevent capital flight to cheaper...
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French Tax cuts, +ve CAC
Manuel Valls (new PM) was addressing the Parliament this afternoon. Apart from a confirmation of the “Pacte de Responsabilite”, Manuel Valls also committed to reduce the (high) corporate tax rate. At...
View ArticleDongfeng strong in Asia: positive for Renault and Peugeot
Dongfeng +7%, retraces 5 months of losses in 3 weeks, reports management saying previous 2014 sales guidance will be the low end, sales in the first 5 months have been better than expected. This is a...
View ArticleEuropean Autos, improving trends
May auto sales are sometimes difficult to interpret, be it just a month and also as sales are impacted by the number of days off (Germany had an extra sales day this year). May sales came out at +4.5%...
View ArticleOur investment case for Renault
As Renault’s stub has lost in value recently (post Nissan performing rather strongly recently), we have updated our thinking on Renault recently. We like Renault for cost savings, price discipline and...
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Peugeot (RB). Why it’s our preference over Renault
While we like both Peugeot and Renault, the reason we discuss the former a little more is due to the message expressed in the following chart: They are both French, make cars and once were closely...
View ArticleRenault, upgrades European sales forecast
Like Peugeot, Renault has a lot of gain from improving European trends. While Peugeot may offer more beta, RNO is the quality mass-market play. We remain a buyer and refer you to our note from June...
View ArticleFrench Autos
Last Monday the Committee of French Auto Manufacturers raised their guidance of French car sales to +2% growth, from flat. This helped Renault outperform the sector, and we still consider it a cheap...
View ArticleRenault: numbers are fine, but endorses our preference for Peugeot
Renault’s H1 results were in-line and the company is on track to achieve its full year guidance, but there were a few flies in the ointment in the results and the call. Auto’s EBIT of EUR348m was just...
View ArticleThought for the day: Peugeot
Peugeot: 8 buys vs. 10 hold/11 sells Renault: 19 buys vs. 11 hold/2 sells BMW: 22 Buys vs. 19 holds / 3 sells.
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