Paris, France – French automaker Renault SA, still holding a Buy rating, has shown promising growth in the first quarter of 2024.

With a revenue beat in Q1, Renault is optimistic about its full-year prospects. The company reported EUR11.7 billion in revenue for the first quarter, exceeding analysts’ expectations by 1.4%. Key drivers behind this revenue beat include price hikes and strong performance in the Sales Financing segment.

Renault also aims to increase its dividend payout to 30% for the intermediate term, showcasing confidence in its ability to generate sufficient cash flow. The company’s long-term goal is to raise the dividend payout ratio to 35%.

Moreover, Renault announced plans to sell up to 100,242,900 Nissan shares to raise capital, indicating a focus on generating cash flow and reducing debt. This strategic move is expected to benefit Renault’s financial position and support its dividend policy.

Looking ahead, Renault is confident in meeting its FY 2024 guidance, which includes a 7.5% operating margin and a minimum of EUR2.5 billion in free cash flow. The company anticipates continued positive pricing dynamics and strong performance in its Sales Financing segment in the current economic environment.

With new vehicle launches and expense optimization plans in place for 2024, Renault is well-positioned to deliver strong financial results. The company’s commitment to enhancing shareholder value through dividends and strategic capital allocation initiatives bodes well for its future growth.

In conclusion, Renault’s performance in the first quarter of 2024 reflects a positive outlook for the rest of the year. With an attractive valuation and strong fundamentals, Renault remains a Buy-rated stock with potential for further growth and value creation for investors.