Renesas Electronics: A 'Buy' On Business Sale And Investor Event (Rating Upgrade)

Renesas Electronics Corporation is upgraded to "Buy," considering the positive takeaways from its latest asset sale and Capital Markets Day disclosures. RNECY's recent divestiture reduces net leverage and enables focused investment in other high-growth business segments. The company targets a tripling of its revenue by 2035, which is achievable considering the growth potential relating to data centers and humanoid robotics. I'm turning bullish on Renesas Electronics Corporation ( RNECY ) ( RNECF ) (6723.T). There are favorable read-throughs from its recent divestment and investor briefing. RNECY's net leverage should decrease with the cash inflows from the asset sale. It's also anticipating a faster pace of revenue