Stellantis, the Consumer Cyclical sector company, was revisited by a Wall Street analyst today. Analyst Alexander Potter from Piper Sandler upgraded the rating on the stock to a Buy and gave it a $15.00 price target.
Claim 70% Off TipRanks Premium
- Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
- Stay ahead of the market with the latest news and analysis and maximize your portfolio's potential
Alexander Potter has given his Buy rating due to a combination of factors that, in his view, create an attractive risk/reward profile for Stellantis. Despite Stellantis facing heavier pressure from Chinese automakers and having seen profitability in its core U.S. and European markets deteriorate sharply, the stock trades at a discount to peers and already embeds low investor expectations. Potter believes that if the company can execute on margin recovery—especially given its history of achieving EBIT margins well above current levels—there is room for meaningful earnings-driven upside. His valuation framework applies a 6x multiple to his 2027 earnings estimate, supporting a higher price target of $15 and reflecting his increased confidence that earnings have already bottomed.
At the same time, Potter sees tangible drivers that could support a turnaround. He expects Stellantis’s U.S. business, a key profit center, to improve as market share stabilizes and upcoming vehicle launches in 2026 help rebuild competitiveness. The company’s joint venture with Leapmotor is also viewed as a strategic way to partially offset Chinese competitive threats, especially in regions where Stellantis’s profits are most exposed. Looking ahead, he highlights potential catalysts such as possible brand divestitures, the resumption of share repurchases, and supportive policy developments, all of which could reinforce the earnings recovery story and justify his upgraded Overweight (Buy) stance.
Potter covers the Consumer Cyclical sector, focusing on stocks such as Tesla, BYD Co, and Li Auto. According to TipRanks, Potter has an average return of 19.7% and a 49.20% success rate on recommended stocks.
In another report released on January 5, J.P. Morgan also maintained a Buy rating on the stock with a €10.00 price target.