Bank of America Securities analyst Horst Schneider has reiterated their neutral stance on STLA stock, giving a Hold rating yesterday.
Meet Your ETF AI Analyst
- Discover how TipRanks' ETF AI Analyst can help you make smarter investment decisions
- Explore ETFs TipRanks' users love and see what insights the ETF AI Analyst reveals about the ones you follow.
Horst Schneider has given his Hold rating due to a combination of factors impacting Stellantis’s performance. The analyst acknowledges the potential for a strong recovery in the US market, driven by relaxed emission standards and new model launches, which are expected to boost earnings significantly by 2026. However, there are concerns about the sustainability of this growth beyond 2026, as projections for 2027 and onward are less optimistic.
Despite the positive outlook in the US, Schneider points out challenges in the European market, which is a significant part of Stellantis’s business. The European segment is expected to face pressure from increased competition and a rising share of electric vehicles, leading to lower margins. These regional disparities contribute to a cautious stance, resulting in a Hold rating as the potential for long-term growth remains uncertain.
According to TipRanks, Schneider is a 3-star analyst with an average return of 4.1% and a 42.86% success rate. Schneider covers the Consumer Cyclical sector, focusing on stocks such as Ferrari, Stellantis, and Continental Aktiengesellschaft.
In another report released yesterday, RBC Capital also maintained a Hold rating on the stock with a €8.00 price target.