Analyst Javier Martinez Olcoz Cerdan of Morgan Stanley reiterated a Buy rating on Stellantis, with a price target of €8.50.
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Javier Martinez Olcoz Cerdan has given his Buy rating due to a combination of factors that highlight Stellantis’ potential for growth. The company is poised for a turnaround with new models from Jeep, RAM, and Dodge expected to boost U.S. volumes starting in the second half of 2025. Additionally, the European market is anticipated to improve with new offerings from Citroen and Leapmotor, coupled with normalized affordability levels.
Stellantis has faced challenges in recent years due to under-investment in product development, leading to a decline in market share in key regions like North America and Europe. However, the company’s recent investments have reached a critical point, with a significant product pipeline expected to drive growth. Despite risks such as execution challenges and tariff uncertainties, the potential for market share recovery and improved profitability under a new CEO presents a favorable risk-reward scenario, justifying the Buy rating.
According to TipRanks, Martinez Olcoz Cerdan is a 2-star analyst with an average return of 1.6% and a 46.15% success rate.
In another report released yesterday, Jefferies also maintained a Buy rating on the stock with a €11.00 price target.