03:36 AM EDT, 05/05/2026 (MT Newswires) -- AlphaValue/Baader Europe revised Renault's (RNO.PA) rating to add from buy, noting the French automotive manufacturer faces profitability pressures from its international push, among others.

"We remain positive on Renault for several reasons, despite the reduction in our target price. First, Renault is largely insulated from key sector headwinds, including tariffs, direct exposure to the Chinese market, and industrial overcapacity in Europe linked to the structural decline in registrations. Second, the group's organisation and revamped line up across the Renault, Dacia and Alpine brands deliver one of the most competitive portfolios in years. Strong hybrid positioning and comprehensive segment coverage should support further market share gains. In addition, the group's partnership strategy has been successful in achieving economies of scale, reducing costs, enhancing return on capital employed, improving technological capabilities, sharing risks, and increasing flexibility despite Renault's smaller size, a trend we expect to continue,"according to a Monday note.

The research firm said the downward revision of its price target to 35.5 euros reflects a squeeze on profitability, driven by the expansion into less profitable global markets, paired with rising pricing competition in Europe from Chinese original equipment manufacturers.

Against this backdrop, analysts lowered their EPS forecast for full-year 2026 by 10.4% to 6.54 euros and slashed their 2027 estimate by 21.5% to 6.87 euros.