Shares of Stellantis (FR:STLAP), a leading automotive manufacturing company, are on the rise, gaining about 30% year-to-date. Further, STLAP shares have appreciated by more than 57% over the past year, reflecting higher shipment volumes. Even with the recent gains, analysts predict a potential upside of over 29% for this CAC 40 stock from the current levels as improving market conditions continue to drive volumes.
Momentum Carried Over into Q2
After posting robust shipments and net revenues across all segments in the first quarter of 2023, the momentum from Q1 carried over into Q2 for the company. Stellantis North America (officially FCA US LLC) recently delivered improved second-quarter sales despite tough year-over-year comparisons.
Its total U.S. sales increased by 6% in Q2 compared to the prior-year quarter. The company’s U.S. Head of Sales, Jeff Kommor, said that increased demand adjustments at its dealer network drove sales growth across its brand portfolios.
Better Days Ahead for Stellantis
Stellantis’ growing battery EV (Electric Vehicle) portfolio and focus on strengthening its leadership in hydrogen-powered vehicles augur well for future growth.
On the EV transition, the company said earlier that it currently has 23 EVs in its portfolio and plans to launch another nine new BEVs by the year’s end. Furthermore, the company expects to grow its BEV portfolio to 47 by the end of 2024.
Stellantis will likely benefit from steady demand and a growing BEV portfolio. Further, its focus on maximizing margin performance and generating strong cash flow to deliver profitable growth in all market conditions could support its share price.
Recent Ratings
Thanks to the momentum in its business, Kepler Capital analyst Thomas Besson reiterated a Buy recommendation on the shares of Stellantis on June 29. The analyst projects a growth potential of over 48% in the share price.
Meanwhile, on June 26, Jose Asumendi of J.P. Morgan maintained the Buy rating on the stock, projecting a growth potential of approximately 30% in the share price.
Is Stellantis a Good Stock to Buy?
Analysts maintain a positive outlook on Stellantis stock. It has received a Strong Buy consensus rating based on eight Buy and two Hold recommendations. The average price prediction for a 12-month period is €20.94, which implies a 29.27% growth from the current price.
Along with Stellantis, Air Liquide (FR:AI) is another CAC 40 stock that has recently received Buy recommendations from analysts.
