Stellantis upgrades highs, analysts raise target price

(Il Sole 24 Ore Radiocor) - In Piazza Affari continues to run Stellantis , which updates the all-time highs reached on the eve of the record 2023 accounts (+11% to €18.6 billion net profit 2023, above expectations, revenues +6% to €189.5 billion) and the reassurances of the CEO, Carlos Tavares, on the future of the Italian factories. 'To reach the target of one million cars produced, agreed with the government, we need all our factories. This means that, of course, there is a future for Pomigliano and Mirafiori,' the CEO said. The share price gained about two points, peaking at EUR 24.47, with market capitalisation soaring above EUR 77 billion. The group is the European manufacturer with the highest market capitalisation in the four-wheeler sector: after Tesla ($614.66 billion) and Toyota ($307.50 billion), on the third step of the podium is the group controlled by the holding company Exor with a market cap of 77.05 billion euro.

Although the guidance on 2024 continues to be represented by a floor and remains poorly indicative since the 2023 results are well above that, according to analysts, in light of the indications provided by competitors and a macroeconomic context that management says supports revenue growth, there is room for an increase in estimates. In fact, Equita's experts, who confirm the 'buy' rating on the stock, have raised "estimates and target, increasing the target price by 15% to EUR 26.5 per share, two-thirds of which for the revision of estimates and one-third for the cancellation of shares from the buyback". Intermonte also raised 'the target from EUR 18.6 to EUR 23.7 (already exceeded today) due to the impact of cash generation following the valuation roll-over. The reasons for our recommendation (i.e. price pressure and higher inflation affecting profitability) are not materialising, but the lack of upside to our target price led us to confirm our neutral rating'.