STELLANTIS : Deutsche Bank raises its target price
February 19, 2024 at 08:24 am EST
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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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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%).