Renault: Management Targets 30% Annual Revenue Growth and 10% Margin for Ampere

No-moat-rated Renault presented its investment case for Ampere, its electric vehicle carve-out. A first-half 2024 initial public offering is anticipated. Ampere officially began operations on Nov. 1 with one model and management 2023 forecast volume of 45,000 units, revenue of EUR 2.8 billion, and an operating loss. Alliance partners Nissan and Mitsubishi invested a total of EUR 800 million in Ampere and Qualcomm is currently considering a stake. Renault Group will retain a “strong majority” of Ampere capital. Due to the time value of money, we raised our fair value estimate EUR 1 to EUR 90. The 5-star-rated shares of Renault currently trade at a compelling 60% discount to our new fair value.