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Stellantis: Solid 1Q26 Momentum and Strategic Upside Balanced by Near-Term Cash Flow and Execution Risks (Hold Recommendation)

Stellantis: Solid 1Q26 Momentum and Strategic Upside Balanced by Near-Term Cash Flow and Execution Risks (Hold Recommendation)

Christian Frenes, an analyst from Goldman Sachs, maintained the Hold rating on Stellantis. The associated price target was lowered to €7.00.

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Christian Frenes has given his Hold rating due to a combination of factors that balance improving fundamentals with remaining uncertainties. Stellantis is delivering a solid start to 1Q26, with shipments and revenue expected to grow meaningfully year over year, and North America showing healthier mix and pricing trends that should support margins.

At the same time, free cash flow in the quarter is likely to be negative given cash outflows tied to prior charges, and the longer‑term earnings trajectory still depends on executing strategic initiatives. The Leapmotor partnership and potential shared production in Europe offer upside through better factory utilization and technology transfer, but these benefits will take time to fully materialize, justifying a more neutral, Hold stance for now.

In another report released yesterday, Citi also maintained a Hold rating on the stock with a €7.50 price target.

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