UBS announced on Friday that it had changed its opinion on Renault shares from 'sell' to 'neutral', with its target price raised from €31 to €50.

The broker - who had switched to 'sell' on the stock in the summer of 2023 - explains that after the cancellation of the Ampere IPO, the sale of the Nissan stake and the investigation by Brussels into Chinese electric cars, it is considering 'attractive' redistributions of cash to shareholders.

According to his calculations, Renault should be one of the few groups in the sector to increase its profit margins this year, and could end the year with a net cash position representing close to 40% of its market capitalization.

After a solid first quarter (especially in relation to its comparables), we are more confident that Renault will be able to achieve its target of an operating margin of at least 7.5% this year", he stresses.

The only reservation, according to the broker, is that Ampere - which is not aiming for operating breakeven until next year - is holding back possible returns to shareholders.

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