On Wednesday, Goldman Sachs (NYSE:GS) showed confidence in Renault SA (OTC:RNLSY) (RNO:FP) (OTC: RNSDF), upgrading the stock from Neutral to Buy and increasing the price target to €70.00 from the previous €51.00.
The investment firm anticipates that Renault (EPA:RENA) will benefit from a strong lineup of new products expected to be released in the near future.
The analyst from Goldman Sachs highlighted the company's robust product cadence as a key driver for the upgrade. Renault is expected to launch 10 new products in 2024, which could significantly boost the company's automotive EBIT (Earnings Before Interest and Taxes) by 21.5% in 2024 and 30.5% in 2025, compared to 2023.
The optimism surrounding Renault's stock is further supported by several key product launches scheduled for 2023. These products are anticipated to contribute economically on a full-year basis, which has not yet been reflected in the company's financials.
Goldman Sachs' outlook for Renault is based on the potential financial impact of the new product launches. The firm estimates that these launches, on a gross basis, could provide a substantial incremental contribution to the automaker's EBIT in the next two years.
The upgrade and price target adjustment for Renault come at a time when the automotive industry is keenly observing market trends and consumer demand for innovative products.
Renault's upcoming offerings are expected to play a significant role in the company's financial performance and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.