Renault S.A (RNO) | News Based Sentiment Analysis

• On September 19, 2025, Berenberg lowered its price target for Renault SA (EPA:RNO) to EUR45.00 from EUR48.00 while maintaining a "Buy" rating, citing a recent H1 2025 profit warning and senior management changes that created uncertainty. Despite these concerns, Berenberg expects strong product momentum in 2025-2026 with models like the Renault 5, Renault 4, and Dacia Bigster, and considers the revised 6.5% margin guidance for 2025 as realistic.
• Renault, Nissan, and Mitsubishi Motors are advancing their EV collaboration at the Ampere Douai Plant, with the Alliance Operating Board meeting there on September 16, 2025. The Douai plant received a €550 million investment and achieved 100% EV production in May 2023, producing 89,527 units in 2024, and will produce the Nissan Micra EV and next-generation Mitsubishi Eclipse Cross, scheduled for launch in late 2025.
• Renault CEO François Provost confirmed Alpine's long-term future in Formula 1 on September 16, 2025, ending speculation about the manufacturer’s commitment to the sport, despite the company reporting an €11.2 billion loss in H1 2025, including a €9.3 billion write-down on its Nissan investment.
• Renault Group announced key leadership appointments in India on September 16, 2025, appointing Vikraman V as Head of Renault Engineering India and Sandeep Bhambra as Chief Designer Advanced Renault and Head of Renault Design Centre India, aiming to leverage India’s growing importance as an automotive innovation hub.
• Renault is facing a ten-week technical trial in the High Court starting in October 2025, involving 1.9 million consumer claims related to alleged emissions cheating, stemming from new laws enacted in September 2020 requiring stricter vehicle emissions testing.
• Earlier in the month, on September 11, 2025, Simply Wall St indicated Renault is undervalued by 30.1% based on growth and margin forecasts, while acknowledging risks related to tariffs and debt.

The Investment Story: September was a mixed month for Renault, marked by analyst adjustments, continued EV investment, and legal challenges, all while navigating a period of leadership transition and financial headwinds.

What It Means for Investors: The combination of a lowered price target from Berenberg, ongoing emissions litigation, and a significant H1 loss create short-term uncertainty. However, the strategic EV partnerships and undervaluation assessment suggest potential long-term value for investors willing to accept risk.

Looking Ahead: Investors should closely monitor the outcome of the emissions trial in October 2025, the progress of the EV collaboration with Nissan and Mitsubishi, and Renault’s ability to execute its turnaround strategy in India.

The Bottom Line: Renault is a company in transition, facing both significant challenges and promising opportunities. While the near-term outlook is clouded by legal issues and financial losses, the company’s commitment to EVs and potential undervaluation make it a potentially interesting, albeit risky, investment.