Jefferies on Monday maintained its buy recommendation on Stellantis and raised its target price for the stock from €23 to €25, believing that the planets are aligning for the automaker.

In a note dedicated to the sector, the intermediary points out that the group's disciplined approach has enabled it to achieve profitability in its electric vehicle activities in Europe.

As for the United States, the break-even point in electric should be reached next year, thanks to the launches of the RAM ProMaster and 1500 REV, he continues.

While he is concerned about the Group's market losses, both in Europe and the USA, the analyst believes that the problems linked to US inventory levels can be managed, as illustrated by the progress made by the RAM and Jeep brands.

Jefferies - which believes that its forecasts for the Group could prove somewhat conservative - adds that Stellantis has sufficient financial resources to seize 'opportunities' or improve the remuneration offered to shareholders.

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