Renault
Note: This is a daily stock update and the information stands true as of 16/06/25, 09:00 CET.
Company Update:
Expert Opinion:
This is a blow for Renault. Good managers are hard to find and even harder to keep, it seems. The turnaround at Renault over the last 5 years has been spectacular and we are now entering a phase of uncertainty. Renault is the only car manufacturer on which we have a positive rating, but our expert sees no reason to be long the name at this stage as we need to find out who will run the show on the long run. Regarding Kering, he is a bit confused by the move. While M de Meo's reputation as a good manager and as a specialist of marketing and communication is a positive, he has no experience of luxury, having made all his career within the automotive sector. Yet as we highlighted, we believe Kering was in absolute need of new momentum and he may be the right man for the job. He sees that as a positive for Kering but despite the significantly drop in share price, valuation isn't low (PE15 and 16 at 19.7x and 16.8x respectively) and we need to see actual signs of operating recovery and cash flow generation before being turning positive on the name.
For daily updates, subscribe to our newsletter and for detailed information, reach out to us at sales@alphavalue.eu
Company Update:
Renault has announced that its current CEO, Luca de Meo, who led the company’s successful turnaround through the Renaulution plan launched in 2021, will step down in mid-July. De Meo has decided to pursue new challenges, most likely as the next CEO of Kering, even though this hasn't yet been confirmed by the luxury company.
The announcement comes as a major surprise for Renault, with the board likely not anticipating his departure and caught off guard by his decision. It sends a strongly negative signal, as the architect of the group’s current structure—split into four entities (Renault Core, Ampère, Horse, and Mobilize)—is leaving unexpectedly, just months before the unveiling of Renault’s new strategic plan, Futurama, scheduled for November.
It remains unclear how Renault will respond. The company may appoint a new CEO from within by July 15, or name an interim leader to allow for a broader search. This development could mark the start of governance uncertainty at Renault, particularly as its current chairman, Jean-Dominique Senard—a widely respected figure in the automotive industry—is expected to leave the group in 2027, at the end of his mandate, due to age-related governance limits.
Expert Opinion:
This is a blow for Renault. Good managers are hard to find and even harder to keep, it seems. The turnaround at Renault over the last 5 years has been spectacular and we are now entering a phase of uncertainty. Renault is the only car manufacturer on which we have a positive rating, but our expert sees no reason to be long the name at this stage as we need to find out who will run the show on the long run. Regarding Kering, he is a bit confused by the move. While M de Meo's reputation as a good manager and as a specialist of marketing and communication is a positive, he has no experience of luxury, having made all his career within the automotive sector. Yet as we highlighted, we believe Kering was in absolute need of new momentum and he may be the right man for the job. He sees that as a positive for Kering but despite the significantly drop in share price, valuation isn't low (PE15 and 16 at 19.7x and 16.8x respectively) and we need to see actual signs of operating recovery and cash flow generation before being turning positive on the name.
For daily updates, subscribe to our newsletter and for detailed information, reach out to us at sales@alphavalue.eu
Subscribe to our blog
