(CercleFinance.com) – Morgan Stanley renewed its ‘overweight’ recommendation on Stellantis on Thursday while increasing its price target on the stock from 24 to 28 euros.
In a research note, the analyst looks back on the good upward trajectory recently signed by the car manufacturer, affirming that he still sees potential value at current levels, as for Renault.
He adds that the group, like the diamond firm, offers attractive remuneration to shareholders, thanks to a share buyback program which, according to him, limits the downward potential of the stock.
MS adds that it appreciates the geographical positioning of the two manufacturers, and particularly their limited exposure to China, which protects them against excessive pressure on prices this year.
Due to the sharp rise in the stock since the start of the year, the intermediary warns, however, that profit-taking remains possible, while warning that high interest rates could also end up weighing on demand.
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