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Renault – House of Cars, Season 3: Upgrade to Buy

 Philippe Houchois, European and U.S. Auto Analyst

After “Synergies” and “Coup,” now comes Season 3: “Capital Unwinding.” The most likely outcome from the current crisis, in Jefferies’ opinion, is a rebalancing of the Nissan Alliance with cooperation continuing and Renault reducing its stake to a “fairer” level, possibly as low as 15%. Synergies can still be generated but selling down shares to Nissan or in the market would help reduce the valuation discount and enable Renault to redeploy capital organically or via M&A. FULL REPORT