Last night, Renault Group announced that it had decided to cancel the initial public offering of Ampere, a European pure player in electric vehicles and software.

Following this announcement, Oddo BHF reiterated its Outperform recommendation on the stock, with a price target of E55.

The automaker considered that market conditions were not ripe for a successful transaction.

However, it reiterated that Ampère's strategic plan was self-financing, and that the higher-than-expected FCF generation over 2022/2023 would enable it to finance the company's development in the absence of external investors (Nissan and MMC could still invest).

Yesterday's positive tone from management regarding the 2023 financial results (to be published on 02/15), the richness of the 2024/25 product plan (ICE and BEV) and, more generally, the financial outlook (we are more than 10% above expectations on EBIT for 2024) all constitute short-term advantages," adds the research firm.

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