Renault SA (EPA:RNO) Just Reported, And Analysts Assigned A €49.22 Price Target

Renault SA (EPA:RNO) shareholders are probably feeling a little disappointed, since its shares fell 6.5% to €32.19 in the week after its latest interim results. It was an okay result overall, with revenues coming in at €28b, roughly what the analysts had been expecting. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Taking into account the latest results, Renault's 16 analysts currently expect revenues in 2025 to be €57.4b, approximately in line with the last 12 months. Losses are supposed to decline, shrinking 19% from last year to €35.13. Before this latest report, the consensus had been expecting revenues of €57.3b and €31.97 per share in losses. So it's pretty clear consensus is mixed on Renault after the new consensus numbers; while the analysts held their revenue numbers steady, they also administered a moderate increase in per-share loss expectations.

See our latest analysis for Renault

With the increase in forecast losses for next year, it's perhaps no surprise to see that the average price target dipped 5.4% to €49.22, with the analysts signalling that growing losses would be a definite concern. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Renault at €65.00 per share, while the most bearish prices it at €38.00. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Renault's revenue growth is expected to slow, with the forecast 1.8% annualised growth rate until the end of 2025 being well below the historical 6.1% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 3.9% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Renault.

The Bottom Line

The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at Renault. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Renault's future valuation.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Renault analysts - going out to 2027, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 2 warning signs for Renault you should be aware of, and 1 of them shouldn't be ignored.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.