Analyst Michael Jacks of Bank of America Securities reiterated a Buy rating on Stellantis (STLA – Research Report), retaining the price target of €16.00.
Michael Jacks has given his Buy rating due to a combination of factors that indicate a positive outlook for Stellantis despite a challenging 2024. The company faced higher industrial costs and missed adjusted operating income expectations, but these were partially offset by better-than-expected pricing and a reduction in vehicle inventories. This positions Stellantis well for margin improvement in 2025.
Looking ahead, Stellantis is expected to see steady improvement, with revenue growth and a mid-single-digit operating margin anticipated. The company plans to launch new models and maintain competitive pricing in North America, which should support a more favorable financial performance. Although estimates for 2025-2026 have been slightly reduced, Stellantis’s valuation remains attractive compared to its peers, justifying the Buy rating. The expectation of dividend growth further supports this positive assessment.
In another report released yesterday, UBS also maintained a Buy rating on the stock with a €16.00 price target.