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Research Alert: CFRA Lowers Opinion On Shares Of Stellantis N.v. To Hold From Buy
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Research Alert: CFRA Lowers Opinion On Shares Of Stellantis N.v. To Hold From Buy
Mar 22, 2024 5:55 AM

08:25 AM EDT, 03/22/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We increase our 12-month target by $2 to $30, based on a '25 P/E of 4.7x, a justified premium to its historical average forward P/E of 4.3x. Our estimates are unchanged. We lower our opinion to Hold on valuation after a big run-up for the shares over the past several weeks, which are now up 25% YTD versus a 10% gain for the S&P 500. Going back to last fall, we think the stock has benefited first from resolution of the UAW strike, and more recently from positive momentum following much better-than-expected earnings. We have growing concerns about more difficult comps ahead and the impact of a higher-for-longer interest rate environment on sales, particularly in its key markets of North America and Europe (46% and 35% of total revenue, respectively, in 2023). In North America, higher costs from the new UAW deal should weigh on margins, and in Europe, we think sales volumes are likely to be sluggish following a strong rebound in 2023 (see recent guidance from Volkswagen).

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