Analyst Note| Richard Hilgert |
No-moat rated Renault reported first-half earnings per share of EUR 1.29, EUR 1.74 ahead of the FactSet consensus for a loss of EUR 0.45 per share but a whopping EUR 28.20 over the COVID-19 impacted loss of EUR 26.91 reported last year. Renault’s results were aided by Nissan JV equity income of EUR 100 million versus a loss of EUR 4.8 billion a year ago. The French automaker publishes only half- and full-year financial statements. Due to the time value of money since our last update, we raised our fair value estimate to EUR 86 from EUR 84. For patient long-term investors willing to accept the risk of a turnaround situation, the 5-star rated shares currently trade at a compelling 63% discount to our new fair value estimate.