Bernstein analyst Stephen Reitman reiterated a Hold rating on Stellantis today and set a price target of €8.00.
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Stephen Reitman has given his Hold rating due to a combination of factors surrounding Stellantis’s current market position and future prospects. The company is in a transitional phase, as highlighted by CEO Antonio Filosa, who noted recent improvements in pricing after a challenging period. While Stellantis is addressing past strategic missteps and filling product gaps in key markets like North America and Europe, the path to recovery is expected to be gradual rather than immediate.
Additionally, Stellantis has maintained its FY25 guidance, projecting revenue growth and a modest operating margin improvement. However, uncertainties remain, such as potential unquantified charges and changes in warranty estimates, which could impact financial performance. The declining market share of key products like the RAM 1500 in North America further underscores the need for sustained improvement before investor confidence can be fully restored. These factors collectively justify the Hold rating, as the market awaits clearer evidence of a turnaround.
In another report released on November 1, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a €9.50 price target.