#Renault's stock drops 15.5% to 34.84 euros at the start of trading this Wednesday, July 16.
A "blow" to market confidence in the stock
The Boulogne-Billancourt-based group now anticipates an operating margin for this year around 6.5% compared to at least 7% previously, and free cash flow between 1 billion and 1.5 billion euros, down from more than 2 billion euros before.
"Although the new margin target remains solid compared to other automakers, we view the earnings warning as another clear blow to market confidence in the stock," comments Deutsche Bank. The German bank has cut its price target to 47 euros from 55 euros previously and confirmed its recommendation to "hold."
Renault has been forced to lower its targets due to a first half that was worse than expected by the manufacturer and the market.
In the first six months of 2025, Renault generated revenues of 27.6 billion euros, up 2.5%, an operating margin of 6%, down from 8.1% in the first half of 2024, and a free cash flow of 47 million euros.