Shares of automakers led European shares larger Thursday, after Renault sharply raised its dividend following a lift to gross sales and Stellantis proposed a €3 billion share buyback.
Paris-listed Renault
RNO,
stated late Wednesday that it made a internet revenue in 2023 of €2.315 billion ($2.48 billion), in comparison with a lack of €716 million in 2022.
The internet revenue was under analysts estimates of about €2.62 billion — after deducting losses from the disposal of a stake in Nissan — however different enhancements cheered traders.
Global gross sales volumes rose 9% after 4 consecutive years of declines; working margins elevated from 5.5% in 2022 to 7.9% final 12 months, and administration urged a dividend of €1.85 per share, up from €0.25 the 12 months earlier than.
“The proposed dividend payout illustrates our confidence in our ability to continue to grow,” Thierry Pieton, Renault’s chief monetary supply, advised reporters.
The improve in gross sales and margins comes after chief government Luca de Meo appeared to enhance effectivity by trimming the variety of fashions Renaults makes.
Renaults shares rose greater than 6% to €40.08, however are down 8% during the last 12 months.
Pierre-Yves Quemener, analyst at Stifel, stated he noticed Renault rising margins additional and rated the shares a purchase with a value goal of €53.
“With €3.7 billion in net cash and €4 billion in Nissan shares remaining
to be monetized, current market value of €11bn seems much too low; re-rating is required,” he stated.
Meanwhile shares of Stellantis
STLAM,
STLA,
which produces marques together with Alfa Romeo, Chrysler, Citroën, Fiat, Jeep, and Peugeot, rose 4% to a document excessive, after the Netherland-headquartered group stated it will purchase again as much as €3 billion of its shares in 2024.
The scheme, together with a proposal to spice up the dividend by 16% to €1.55 per share, offset news that strikes at its North American vegetation had pushed working earnings within the second half of 2023 down 10% to €10.2 billion.
Stellantis CEO Carlos Tavares stated he anticipated a “turbulent 2024”, however in an announcement the corporate stated there have been numerous elements that might help revenues this 12 months, “including reduced supply and logistical constraints, stabilizing and potentially reduced interest rates, and the benefits of the Company’s expected expansion of its product offering.”
The news from the 2 automakers lifted others within the sector, pushing the STOXX Europe 600 Automobiles & Parts Index
XX:SXAP
up 1.7%.
More broadly in Europe the temper was optimistic following Wall Street’s rebound in a single day and firmer U.S. futures on Thursday. The CAC 40
FR:PX1
in Paris rose 0.7%, Frankfurt’s DAX
DX:DAX
added 0.6%, although London’s FTSE 100
UK:UKX
was flat amid weak spot for power majors BP
BP,
BP,
and Shell
SHEL,
SHEL,
as oil costs slipped.
Source web site: www.marketwatch.com
