France-based automaker Groupe Renault (FR:RNO) has ended its four-year slump, registering a growth of 9% in 2023. The company attributed this performance to the growth in its three core brands, Renault, Dacia, and Alpine. Moving forward, 2024 is expected to be a significant year for the company, with ten new launches scheduled.
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Despite the positive update, the stock is trading down by 2.06% at the time of writing today. This was mainly due to an overall fall in the stocks of automobile companies in Europe after Tesla (NASDAQ:TSLA) decided to reduce prices for its Model Y electric cars in Germany.
Renault’s Robust Sales
In 2023, Renault achieved volume growth of 18.6% in Europe, capturing the third spot in the region. The growth outperformed the 13.9% growth at the industry level. As of December 2023, the company’s current order book in Europe equates to 2.5 months of anticipated sales.
Among its brands, the company’s namesake Renault brand achieved a notable 9.4% increase in sales in 2023, while the sales of the budget-friendly brand Dacia saw a growth of 14.7%. Within the Renault brand, the company is witnessing solid demand for both hybrid and all-electric vehicles (EVs). Notably, EVs now constitute almost 40% of the Renault brand’s total passenger car sales volume in 2023.
The company will announce its full-year results for 2023 on February 15, 2024.
What is the Price Target for Renault?
Oddo BHF analyst Michael Foundoukidis characterized the company’s sales performance as “relatively robust.” He is also optimistic about the growth in 2024, citing the various launches planned for the year.
According to TipRanks, RNO stock has received a Moderate Buy consensus rating based on recommendations from 12 analysts. This includes six Buys, five Holds, and one sell. The Renault share price forecast is €46.68, which is 39% higher than the current price level.
