Morgan Stanley on Thursday renewed its 'overweight' recommendation on Stellantis, while raising its target price for the stock from €24 to €28.

In a research note, the analyst looks back on the carmaker's recent bull run, claiming that he still sees potential value at current levels, as he does for Renault.

He adds that the Group, like Renault, offers attractive returns to shareholders, thanks to a share buyback program that he believes limits the share's downward potential.

MS adds that it appreciates the geographic positioning of both automakers, and in particular their limited exposure to China, which protects them against too much pressure on prices this year.

Given the share's strong rise since the beginning of the year, the intermediary warns, however, that profit-taking remains a possibility, while cautioning that high interest rates could also end up weighing on demand.

Copyright (c) 2024 CercleFinance.com. All rights reserved.
The information and analyses published by Cercle Finance are intended solely as a decision-making aid for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.