Renault continues its recovery on the Paris Bourse on Tuesday, as the automotive group organizes an event in Romania dedicated to its low-cost Dacia brand.

After rebounding by more than 1% yesterday, the stock is up around 1.6% this morning. Despite the recent correction in the Paris market, it is still up 34% since January 1.

At the event, the automaker said last night that Dacia expects to double its sales between 2022 and 2030, half from volume growth and the other half from mix and pricing.

The low-cost brand - which already generates a solid operating margin of over 10% - also expects to reach the 15% threshold by 2030.

In addition, Dacia plans to consolidate its profile as a 'champion' in terms of returns, with a return on capital employed (ROCE) that should double between 2022 and 2030.

This should be higher than that of the Renault group as a whole, which has set itself the target of achieving an ROCE of at least 30% from 2025 onwards.

Analysts reacted positively to this meeting, which was eagerly awaited by the financial community.

We are even more convinced of Dacia's uniqueness in the European landscape, and of its ability not only to assert itself as a major weapon for Renault in the face of rising Chinese competition, but also as a still solid contributor to growth in the automaker's earnings in the years to come", says Oddo BHF.

"While the brand's success is already undeniable (...), the potential is still significant", add the private bank's teams.

From Oddo's point of view, Dacia should benefit in particular from the expansion of its range towards the C segment, that of the so-called "compact" SUVs.

To this end, Dacia plans to launch the Bigster next year, before adding two other vehicles to the range.

The brand is thus aiming for one million vehicles sold by 2030, with around one-third coming from the C segment.

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