Jefferies analyst Philippe Houchois has upgraded Stellantis (STLA, Financial) from Hold to Buy, raising the price target to $13.20 from a previous $10.25. The analyst points out that the company’s earnings decline is nearing a turnaround. According to the firm, Stellantis’ new internal CEO is positioned to swiftly address overdue strategic decisions, ranging from brand management to technological advancements.
Despite Stellantis facing significant challenges in the automotive sector, Jefferies notes that many operational issues stem from within the company and are considered as fixable. In Europe, product launch delays are being resolved, while in North America, the company is in the process of realigning its model offerings, following a difficult period of inventory reduction. Although restructuring costs are considerable, they are seen as manageable by Jefferies.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 9 analysts, the average target price for Stellantis NV (STLA, Financial) is $12.74 with a high estimate of $19.83 and a low estimate of $8.10. The average target implies an upside of 32.82% from the current price of $9.59. More detailed estimate data can be found on the Stellantis NV (STLA) Forecast page.
Based on the consensus recommendation from 10 brokerage firms, Stellantis NV's (STLA, Financial) average brokerage recommendation is currently 2.8, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Stellantis NV (STLA, Financial) in one year is $18.06, suggesting a upside of 88.32% from the current price of $9.59. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Stellantis NV (STLA) Summary page.
