Stellantis (NYSE:STLA) announced today that it will expand its hybrid vehicle lineup in Europe to 36 models by 2026 to meet rising demand. Stellantis, formed from the merger of Peugeot maker PSA and Fiat Chrysler, is the world’s fourth-largest automaker in terms of sales.
Stellantis’s Details of its Hybrid Vehicles
The automaker stated that it will offer 30 hybrid models this year across nine of its 14 brands, including Fiat, Peugeot, Jeep, and Alfa Romeo. Additionally, it plans to launch six more models by 2026. The company also noted a significant increase in customer orders for hybrids in Europe, with sales rising by 41% in the region during the first six months of the year.
Stellantis remains focused on “mild hybrid” vehicles, which utilize a 48-volt battery, dual-clutch gearbox, and enhanced braking energy recovery.
Bank of America Analyst Remains Bullish
STLA is expected to announce its results for the first half of the year on July 25. However, the company stated back in June that its sales have remained stable this year despite softer global demand.
Bank of America analyst Michael Jacks remains bullish on STLA with a Buy rating, despite lowering the price target from $27.06 to $25.98. The analyst acknowledged that the company faced challenges at the start of 2024, “led partly by some ‘go-to-market’ mistakes and delays in new launches,” but Jacks still anticipates a strong recovery in the second half of the year.
The analyst’s revised price target suggests an upside potential of 33.4% from current levels.
Is STLA a Good Stock to Buy?
Analysts remain cautiously optimistic about STLA stock, with a Moderate Buy consensus rating based on 13 Buys, three Holds, and two Sells. Over the past year, STLA has increased by more than 15%, and the average STLA price target of $27.46 implies an upside potential of 40.9% from current levels.
