Barclays initiated coverage of Stellantis with an Overweight rating and EUR 22.50 price target. Stellantis screens among the best EU and U.S. automakers on EBIT margin, free cash flow, dividends and capital efficiency, but this quality isn’t reflected at the current valuation in the context of limited investor appetite for the EU auto sector in general, the analyst tells investors. Despite UAW strike uncertainty, shares are near all-time highs, but positioning remains light despite Stellantis’ structural earnings growth and resilience being among the highest of the EU and U.S. automakers, the analyst added.
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