LONDON (ShareCast) - Swiss investment bank UBS (NYSEArca: DJCI - news) has reiterated its 'buy' rating for Renault (Other OTC: RNSDF.PK - news) after the French automaker confirmed the sale of its stake in Volvo (Dusseldorf: 613304.DU - news) .
Renault will rake in €1.4-€1.5bn, or €5.40 per share, which will allow the company to reduce its net debt and finance industrial investments, UBS explained.
Nonetheless, UBS lowered its price target for the stock to €49 from €53.
Analysts at UBS have updated their estimates, lowering the 2012 earnings per share estimate by 6%. They expect an operating loss of €16m compared to last year's profit of €174m due to falling volumes and production.
Additionally, they lowered the 2013 and 2014 earnings per share estimates by 13% and 16% respectively.
At midday trading on Thursday, shares of Renault were up 1.63% to €40.275.