Morgan Stanley on Thursday renewed its 'overweight' recommendation on Stellantis, while raising its target price for the stock from €24 to €28.
In a research note, the analyst looks back on the carmaker's recent bull run, claiming that he still sees potential value at current levels, as he does for Renault.
He adds that the Group, like Renault, offers attractive returns to shareholders, thanks to a share buyback program that he believes limits the share's downward potential.
MS adds that it appreciates the geographic positioning of both automakers, and in particular their limited exposure to China, which protects them against too much pressure on prices this year.
Given the share's strong rise since the beginning of the year, the intermediary warns, however, that profit-taking remains a possibility, while cautioning that high interest rates could also end up weighing on demand.
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Stellantis N.V. is one of the world's leading car manufacturers. The activity is essentially organized around 4 sectors:
- sales of passenger cars and light commercial vehicles: Abarth, Alfa Romeo, Chrysler, Citroën, Dodge, Fiat, Jeep, Lancia, Maserati, Opel, Peugeot, Ram, Vauxhall, Free2move and Leasys brands;
- sale of luxury vehicles: Maserati and DS Automobiles brands;
- sale of automotive equipment: interior systems, car seats, car exteriors, emission control systems, etc.;
- other: sales financing services (purchase, rental, leasing, etc.), after-sales services, etc.; - other: sales financing services (purchase, rental, leasing, etc.).
Net sales are distributed geographically as follows: the Netherlands (0.8%), North America (46.7%), France (9.5%), Brazil (7.3%), Italy (6.2%), Germany (5.5%), the United Kingdom (4.4%), China (0.6%) and other (19%).