Stellantis upgraded to Buy from Hold at Jefferies

Jefferies analyst Philippe Houchois upgraded Stellantis (STLA) to Buy from Hold with a price target of $13.20, up from $10.25. Data suggests the company’s “earnings slide is about to turn,” the analyst tells investors in a research note. The firm says a new internal CEO “can move fast on overdue decisions, from brands to footprint and technology.” While Stellantis’ autos outlook is “more challenged than ever,” many of the company’s operating issues are self-inflicted and fixable, contends Jefferies. In Europe, the company’s product launch delays are easing and in North American its model re-positioning and renewals “follow a painful de-stocking.” The firm believes Stellantis’ restructuring costs are material but manageable.