Bernstein analyst Stephen Reitman maintained a Hold rating on Stellantis (STLA – Research Report) today and set a price target of €11.50.
Stephen Reitman has given his Hold rating due to a combination of factors impacting Stellantis. The company is currently in a transitional phase, searching for a new CEO to guide its recovery in North America and Europe. The previous CEO’s strategy, which included replacing the HEMI V8 engine with a newer model, was not well-received in the North American market, indicating a misalignment with consumer preferences.
Additionally, Stellantis faces challenges from US tariffs affecting its operations in Mexico and Canada, which contribute significantly to its US sales. The absence of a CEO and the ongoing correction of past strategic missteps, such as cost-cutting measures that alienated its customer base, further complicate its recovery. Despite these challenges, the company’s valuation metrics, including a revised EPS forecast and target price, suggest a stable outlook, justifying the Hold rating.
According to TipRanks, Reitman is a 4-star analyst with an average return of 7.1% and a 49.09% success rate. Reitman covers the Consumer Cyclical sector, focusing on stocks such as Mercedes-Benz Group, Ferrari, and Bayerische Motoren Werke Aktiengesellschaft.
In another report released on March 7, RBC Capital also maintained a Hold rating on the stock with a €12.00 price target.
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