Stellantis is defended by Deutsche Bank on long-term vision

Vertigo3d/E+ via Getty Images

Deutsche Bank reaffirmed a Buy rating on Stellantis N.V. (NYSE:STLA) after talking over the automaker's 2030 Dare Forward plan with top executives.

Analyst Tim Rokossa said All of the targets laid out by Stellantis (STLA) are certainly ambitious and pointing in the right direction.

"For example, Stellantis wants to become net carbon-neutral by 2038, it raised its BEV sales targets (by 2030) to 100% for Europe and to 50% for the US, the targeted EUR5bn synergies will likely already be reached by the end of 2024, and for the group, an adj operating margin of >12% is targeted. However, we find that some of the targets were in line with expectations and should therefore not have a short-term effect on the stock."

Rokossa and team said they continue to like the automaker in light of its remarkable +12% profitability level and believe that CEO Carlos Tavares will be able to successfully implement the announced strategy

Shares of Stellantis (STLA) fell 6.13% in premarket trading on Friday after peeling off 4.36% on Thursday.

Dig into the details on the Stellantis 2030 Dare Forward plan.

Comments

[benet1800]

Great stock, great brands, and way undervalued. What a bargain!

[J D R]

@benet1800 Shopped yesterday. Ultra bargain. Entire market cap in cash within 5 years.

[kingRIG2.0]

$14 bucks a share premarket

[Rondayvous]

I've viewed DB endorsements as a sell signal. If the CEO leaves might be with a revisit, good business, bad stock.

[jaysmith80]

@Rondayvous Bet against Carlos Tavares at your risk. I’d advise against it.

[Jay14150]

Any chance Tavares is leaving?

[OscarSmith]

@Jay14150 hope not! best ceo ever

[Jay14150]

@OscarSmith

My opinion is based upon the incredible things that rolls out of his mouth. People who say stupid spit and are in high positions often possess functional incompetence, among other sins.

Obviously your experience has provided you with a different opinion. What positive attributes do I seem to be missing?

Long and loyal despite this guy.

[southbuckeye]

Goals for 2038? Farfetched. No one knows what the world will be like even a year from now. Russia -Ukraine was not factored in a year ago. To plan for 2038 is a pipe dream. Who knows if by then an electricity shortage will make the "green" goal of everyone driving electric vehicles a non starter.

[Udith Fonseka]

@southbuckeye its already a non starter.