Daniel Roeska, an analyst from Bernstein, maintained the Hold rating on Stellantis (STLA – Research Report). The associated price target is €17.00.
Daniel Roeska issued a Hold rating on Stellantis due to a variety of factors. The first significant aspect revolves around the labor agreement between Ford and the United Auto Workers (UAW), which could potentially set a benchmark for Stellantis. Ford has proposed a wage increase of 25% over four years, which is higher than what Stellantis and GM have offered. There are still some pending issues, such as future temporary worker conversion terms, current retiree payments, and unionization at new battery plants. There’s no assurance that the terms of the Ford-UAW agreement will be the final terms, as UAW workers could reject them.
In addition, Stellantis has announced a strategic partnership with Leapmotor, a Chinese electric vehicle manufacturer. Stellantis plans to invest €1.5 billion in Leapmotor, acquiring around 21% ownership in the company. Also, a new joint venture will be established, with Stellantis owning a 51% stake, to handle all business outside of China. This partnership gives Stellantis a foothold in the largest electric vehicle market and provides a real-time benchmark for technological and cost developments in the Chinese market. Importantly, Daniel Roeska believes that this investment aligns with Stellantis’s Dare Forward 2030 strategy and won’t affect the company’s capital return opportunities.
According to TipRanks, Roeska is a 4-star analyst with an average return of 4.1% and a 46.75% success rate.
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Stellantis (STLA) Company Description:
Stellantis N.V. is a leading automotive group that designs, manufactures, distributes, and sells vehicles, components, and production systems. It distributes and sells vehicles under Jeep, Alfa Romeo, Chrysler, Abarth, Dodge, Fiat, Citroën, DS, Peugeot, Opel, Ram, and Vauxhall brands.
Read More on STLA:
- Stellantis (NYSE:STLA) to Pick Up Stake in Chinese EV Maker
- Ford (NYSE:F) and UAW End Strike, Workers Return to Plants
- Stellantis acquires 20% stake in Leapmotor for about EUR1.5B
- Stellantis to Become a Strategic Shareholder of Leapmotor with €1.5 Billion Investment and Bolster Leapmotor’s Global Electric Vehicle Business
- Stellantis close to deal to acquire 20% stake in Leapmotor, Bloomberg says
