On Monday, Deutsche Bank reiterated its buy recommendation on Stellantis shares, with a new target price of 40 euros, up from 32 euros previously.

In a research note, the intermediary welcomes the cash distribution proposed by the group to its shareholders, made possible in its view by better-than-expected cash flow in 2023 due to good control of its investments.

Between the increase in its dividend and the launch of a new share buyback program, the redistribution planned by the automaker represents almost 10% of its market capitalization, notes the analyst.

As for 2024, DB acknowledges that the prospect of a double-digit margin and positive free cash flow (FCF) is a little vague, but considers that it implies a margin greater than or equal to that of 2023.

"We like the company because of its ability to navigate through difficult markets and reduce costs accordingly", concludes the analyst.

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