Stellantis Upgraded to Buy at US$9 PT, Plans US Battery JV Exit
Freedom Capital upgraded Stellantis to Buy from Hold with a US$9 price target (down from $11.30) after reporting a sequential rise in auto deliveries and lowering its 2026-27 outlook. Stellantis plans to exit its US battery joint venture with Samsung SDI to preserve cash following a EUR22 billion charge.
1. Analyst Upgrade and Price Target Adjustment
Freedom Capital’s Dmitriy Pozdnyakov raised Stellantis to Buy from Hold, reducing the price target to US$9 from US$11.30. Preliminary results showed a sequential rise in auto deliveries but prompted a strategic shift and cuts to the 2026-27 outlook due to lower EV demand.
2. Planned Exit from US Battery Joint Venture
Stellantis intends to unwind its US battery joint venture with Samsung SDI to conserve liquidity after recording a EUR22 billion charge. The automaker is evaluating disposal options though no final decision has been taken.
3. Financial Projections and Market Strategy
Despite trimming its 2026-27 projections, Stellantis anticipates a rebound in US sales and market share gains. The company is prioritizing cash preservation and adjusting its investment focus to navigate weaker EV demand.
4. HSBC Maintains Hold, Raises Price Objective
In January, HSBC lifted its EUR8.50 price objective to EUR10 while keeping a Hold rating, reflecting cautious optimism about Stellantis’s medium-term performance amidst market headwinds.