Stellantis N.V. (FR:STLAP) shares have rewarded investors with a growth rate of almost 50% in the last year, driven by strong demand in the automobile industry. Analysts have not only assigned a Strong Buy rating to the stock but also identified a growth potential of around 26% in the share price.
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Stellantis is a global automobile manufacturer that owns 14 well-known brands. The company has operations in around 30 countries and sells its products in 130 markets.
The stock is also part of the “Perfect 10” club on the TipRanks Smart Score tool. The score is calculated based on eight different parameters and implies the stock’s potential to outperform the market’s returns.
The Bullish Case
Analysts are optimistic about the stock, considering the growing demand for private and commercial vehicles in the global automotive market. Analysts are also upbeat about the growing shipment volumes for the company, which have also continued in the second quarter of 2023.
The company’s increased focus on developing its EV portfolio and hydrogen-powered vehicles bodes well for better growth prospects.
Today, Bank of America Securities analyst Michael Jacks upgraded his Buy rating on the stock, projecting a 20% growth in the share price. Jacks believes the transition to the EV will impact margins and earnings as compared to 2022 levels. He is also confident in the stock and expects it to be well-positioned in the storm, as the market has already priced the worst.
Six days ago, Thomas Besson from Kepler Capital confirmed his Buy rating on the stock at a price target of €25.0. This implies a huge growth potential of 50% in the share price.
Is Stellantis Stock a Good Buy?
According to TipRanks, STLAP stock has a Strong Buy rating based on recommendations from 10 analysts. It includes eight Buy and Two Hold ratings.
The average price target is €20.78, which shows a change of 25.5% from the current trading price.
