STELLANTIS : Berenberg downgrades its recommendation to 'hold
March 26, 2024 at 07:38 am EDT
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Berenberg announced this morning that it had lowered its recommendation on Stellantis shares to 'hold' from 'buy', while raising its target price to 29 euros from 21 euros.
In a study devoted to the European automotive sector, the financial intermediary considers that it is time to "catch our breath" after a 27% rise since the beginning of the year.
In the analyst's view, Stellantis is in a position to maintain double-digit profit margins over the next ten years, thanks to its synergies and good cost control.
He is also confident in the Group's ability to manufacture profitable vehicles thanks to its highly modular platforms, a key advantage in his view at a time when the electric vehicle market is experiencing some difficulties.
That said, Berenberg also believes that the potential for pleasant surprises is now more limited after the Group's solid results, which have enabled it to double its share price since it was initiated as a buy in May 2022.
In view of the share's recent revaluation and the lack of short-term catalysts, the professional prefers to downgrade its recommendation to 'hold'.
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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%).