UBS has given Renault a 'Neutral' rating and a target price of 41 euros.
There is speculation about a potential merger between Nissan and Honda.
Analyst David Lesne noted that Renault has previously expressed its intention to reduce its stake in Nissan. If the merger goes ahead, Renault could easily sell shares to a strategic partner or Honda.
The automotive sector is seeing an increase in strategic partnerships and mergers, which could have a significant impact on Renault's market position and investment strategies going forward.