The manufacturer’s strategy based on profitability and the renewal of a successful range allows it to perform remarkably well in an environment that is nevertheless degraded. Stability gives hope for an attractive gain.
Back at its best levels over six months, the Peugeot title is reaping the benefits of the manufacturer’s strategy instilled by its boss Carlos Tavares focused on reducing costs per vehicle and on the rationalization and renewal of a range repositioned on the segments the most promising of the SUV, small city cars and electric. And this with optimized performance in terms of fuel consumption and CO2 emissions. Despite the violence of the health crisis and the confinement period of the second quarter, the group managed to remain profitable despite the 34% collapse of its turnover. The third quarter marked a recovery with a contraction limited to 0.8% of billings and the automotive branch even returned to a growth of 1.2% of its revenues. This performance was achieved despite the 12.7% drop in the number of vehicles sold thanks to a positive price-product mix linked to the successful launch of new models such as the 208, 2008 or C5 Aircross from Citroën. The group confirms its objective of an average operating margin of at least 4.5% for its automotive branch until 2021. With the imminent arrival of vaccines against Covid, the group should benefit from a gradual normalization of the economic environment as it begins to merge with its Italian-American competitor, Fiat-Chrysler. Dubbed Stellantis, the new group will be the world’s fourth largest automaker with sales of 180 billion and 9 million vehicles sold. A significant size effect to amortize the investment expenses in vehicle electrification and autonomous driving.
With stability, it’s double or nothing
After the very fine rebound of 41% of the stock observed over the last six months, a pause is undoubtedly probable in the short term. A stability allows to continue to bet on the file. The selected certificate is issued by Société Générale with a deadline of February 19, 2021 and two terminals located at 12 euros for the lowest and 22 euros for the highest. The stability will be reimbursed 10 euros provided that the Peugeot share continues to evolve within the corridor of fluctuations delimited by the two limits (12/22 euros). Given its buy price, it is likely to offer a 25.1% gain in just three months. But for a risk far from being negligible, since if the title of the corridor defined by the two limits is removed, the stability will lose all of its value.
Our advice: buy a Peugeot stability issued by Société Générale (code: LU2088813295); deadline: February 19, 2021; terminals: 12/22 euros; price: 7.99 euros; portion: 1.