Morgan Stanley analyst Javier Martinez Olcoz Cerdan maintained a Buy rating on Stellantis (STLA – Research Report) today and set a price target of €14.00.
Javier Martinez Olcoz Cerdan’s rating is based on several key observations regarding Stellantis’s current market position and future prospects. Despite a reduction in market share and inventory levels, Stellantis’s performance in the US market has been buoyed by a significant pre-tariff sales surge, which indicates strong demand for its vehicles. This pre-tariff demand has contributed to a notable increase in sales, although it also presents potential challenges if tariffs remain in place.
Furthermore, Stellantis has managed to maintain high incentives, particularly in the European market, which could continue to drive sales despite the competitive pressures. The company’s focus on hybrid and electric vehicles, evidenced by the growth in these segments, positions it well for future market trends. These factors, combined with the overall recovery in the automotive market, underpin Javier’s Buy rating for Stellantis’s stock.