Stellantis: Berenberg on hold, cuts target price

(CercleFinance.com) - On Thursday, Berenberg maintains its 'hold' rating on Stellantis shares, while lowering its target price for them from E14 to E13.
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The analyst points out that the automotive group's H2 2024 operating profit came in well below expectations, even though forecasts had been largely reduced.

The broker is also concerned about the company's net financial position, which has fallen to E15bn, as well as the cautious outlook for 2025.

While the correction in US stocks seems to have stopped for the time being (even if promotional offers remain frequent), the new management team will have to regain the confidence of its partners (i.e. customers, dealers, suppliers and investors), which could take some time, the broker warns.

Berenberg points out that Stellantis' sales momentum remains hampered in several key markets such as Europe and the US, a situation that could worsen with the implementation of new US tariffs.

According to its calculations, Stellantis is trading at 6x its 2025 expected earnings, compared with an average of 5.5x amongst other generalist automakers.


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