More buying on Stellantis, +15% in October. Investments in focus

(Il Sole 24 Ore Radiocor) - More buying on Stellantis at Piazza Affari, where the group's shares gained ground (they were up +2.6% at the start) despite the worsening of the stock markets, bringing performance in the first four sessions of October to +15.4%. According to the latest rumours, Stellantis is planning to invest around USD 10 billion in the US, 'focusing on the most profitable market and adding USD 5 billion to previous plans', as noted by Intermonte analysts. The investments will involve the reopening of plants and the development of new models, especially in Illinois and Michigan, with a focus on the Dodge brands (including a V8-powered muscle car) and also Chrysler. The strategy, Intermonte summarises, 'reflects the will of the new CEO' Antonio Filosa 'to rebalance global investments and align with US economic policies, mitigating the impact of tariffs'.

"The increase in investments in the United States appears to be in line with the strategy outlined by the new CEO Filosa," the experts note. If confirmed, we would welcome the decision to reintroduce a Dodge-branded V8 muscle car to the portfolio, which we believe will meet with greater consumer approval than the current V6 version. "However, it remains to be clarified", they add, "what the future moves on Chrysler will be, and whether the additional 5 billion will be allocated exclusively to these two brands or whether it will also strengthen the other production activities in Illinois and Michigan". The increase in investments in the US, Equita adds, "would not surprise us, in order to limit the impact of tariffs and relaunch some brands that have lost a lot of volume". "In this case," the SIM concludes, "we believe a reshuffle of group investments is more likely and not a significant increase".

News could also be coming directly on the tariffs front, after Republican Senator Bernie Moreno and some representatives of the auto industry announced that US President Donald Trump would be considering a cut in tariffs for automotive production in the US. "We consider the news encouraging for Stellantis," they note from Banca Akros, "as a further easing of tariffs thanks to a greater domestic presence would help the group regain profitability sooner than expected. Also according to Jefferies' experts, who confirm the 'buy' rating, Stellantis "is putting the pieces back together, albeit slowly, with progress to be seen in the third quarter".

As for Europe, and Italy in particular, on 20 October Filosa will meet with the national trade unions, which will aim to obtain assurances on investments and plant activity in our country. The stock, meanwhile, also benefits from the opinion of Mediobanca analysts, who have raised their recommendation to 'neutral' with a target price of EUR 9.7.