(Boursier.com) — Stellantis rises 2.2% to 22.15 euros in the morning this Thursday, while BNP Paribas Exane remains ‘outperforming’ on the file with a target which goes from 25 to 28 euros in an atmosphere buzzing with rumors of operations of merger in the sector to face increased competition from Chinese manufacturers in the electric sector which is expected to weigh on the market in the coming years. Deutsche Bank remains a buyer, while adjusting its target to 32 euros. HSBC had previously downgraded the manufacturer to ‘hold’, believing that it is “time to take a break” after the stock’s performance on the stock market… The bank considered it “worrying” the fact that Stellantis seems to have been slower to prepare for a more “normal” business environment. And citing “high inventories, declining market share and growing incentives fueling the bearish scenario.” The broker, which reduced its target from 24 to 22 euros, nevertheless emphasized that the emphasis placed by the car manufacturer on cost reduction offers a level of comfort in terms of margin sustainability. The next meeting is now set for Thursday February 15 with the announcement of the 2023 accounts…
Italy in turmoil
At the beginning of the week, John Elkann, the president of Stellantis, spoke in Rome with the Italian Minister of the Economy Giancarlo Giorgetti, while the government of Giorgia Meloni denounces the attitude of the automobile group resulting from a merger between PSA and Fiat three years ago. Rome has in fact accused Stellantis in recent weeks of sometimes acting “against the Italian national interest”. On Monday, the President of the Council, Georgia Meloni, described as “bizarre” the criticisms of the group’s general director, Carlos Tavares, who criticized his government “for not sufficiently supporting the automobile industry”.
John Elkann spoke about Stellantis’ activities in Italy, confirmed ongoing industrial projects and his commitment to continuing discussions with government, unions and suppliers to increase automotive production in Italy. The president of Stellantis, on the other hand, refuted any plans for a merger with another car manufacturer, in response to information from the Italian press this weekend according to which France would consider a merger with the competitor Renault… BNP Paribas Exane has finally moved from ‘neutral’ to ‘outperformance’ on the diamond group with an adjusted price target of 40 to 49 euros.
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