On Thursday, Barclays renewed its 'overweight' recommendation on Stellantis shares, with a price target reduced from 22.5 to 22 euros, ahead of the publication of the automotive group's 2023 annual results, scheduled for February 15.
In a research note, the financial intermediary stresses the uncertainty surrounding second-half 2023 performance and 2024 forecasts, in view of the recent weakness in European sales volumes and ongoing destocking in the USA.
For 2024, the analyst now expects sales volumes to rise by just 3%, compared with +5% to date, as the automaker continues to win market share.
In general, Barclays praises the quality and track record of Stellantis, which it says it still considers a 'core' automotive investment, even after its solid stock market performance over the past 12 months.
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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%).