New records for the Italian-French-American automotive group. Analysts expect a further rise in price, here’s why.
Stellantis continues to set new records and rises on the stock market by 2.2%, receiving a positive opinion from analysts who confirm the "buy" rating on the stock. UBS, in particular, maintains the target price at 22 euros, while other analysts are even more bullish, predicting a 12% increase in the target price.
A key element fueling investor optimism is the low-risk profile offered by Stellantis, supported by excellent financial health. Furthermore, the P/E ratio highlights that the stock is currently trading at 3.3x compared to the industry average of 9.7x, suggesting undervaluation potential.
Attention is now turned to the next financial results that Stellantis will announce on February 15. Despite a 1.76% reduction in earnings per share expectations over the past year, investors remain confident in the future outlook.
The growth and success of Stellantis are also evident in the analysis of the financial data of recent years. Since the listing, the group has gained 65%, with a market capitalization that has exceeded 65 billion euros, creating an added value of 25 billion euros in just three years. This has led to significant gains for shareholders, including investors such as Exor and Peugeot, highlighting the stock’s long-term growth potential.
However, Stellantis is not immune to criticism and discussion, especially regarding CEO Tavares’ recent statements regarding incentives and production capacity in Italy. These speeches fuel a broader debate on the Italian automotive industry and Stellantis’ strategies in the international context.
Looking to the future, Italy must focus on enhancing its excellence in the automotive sector, aiming at the high-end component and the components components, where Italy enjoys a strong reputation. However, active participation in the electric car revolution and new technologies will require a well-defined political and industrial strategy, as well as a collaborative approach with global players in the sector.
Stellantis: future operational strategies
Stellantis breaks previous records, reached in December at 21.895 euros, and demonstrates that it still has the energy to extend the uptrend. The movement could lead to a test at around 22.50 of the upper side of the channel which contains the ascending movement from May 2023. The subsequent target at 24.70 euros, the high side of a wider channel drawn by the bottoms of 2020. In the opposite direction it will it is essential to monitor the supports at 20.90 euros, below which the stock could slide to around 19.20.
- Stellantis daily graph
- Source: Baha
Original article published on Money.it Italy 2024-02-08 17:19:42. Original title: Stellantis tocca nuovi record. Ecco i target degli analisti
