On January 9, Jefferies maintained a Buy rating on Stellantis N.V. (NYSE:STLA) and set a price target of €13.00. The day before, on January 8, Piper Sandler upgraded the stock to Overweight from Neutral, raising its price target to $15 from $9.
In a research note, Piper Sandler told investors that Stellantis trades at a lower multiple compared to several peers, and investor expectations are low after several disappointing quarters. The firm sees a favorable risk/reward profile and believes Stellantis has potential for "rapid upside" if it shows faster-than-expected margin expansion, especially given the company's history of achieving EBIT margins well above current levels.
The firm further identified tangible drivers capable of supporting a turnaround. It expects the company's U.S. business, a key center, to improve with market share stabilization and upcoming 2026 vehicle launches helping rebuild competitiveness. Piper Sandler also highlighted other potential catalysts, including possible brand divestitures, supportive policy developments, and the resumption of share repurchases, all of which could support an earnings recovery.
Stellantis N.V. designs, manufactures, distributes, and sells vehicles. Its products are offered under brands including Abarth, Alfa Romeo, Chrysler, Citroën, Dodge, DS, Fiat, Fiat Professional, Jeep, Lancia, Opel, Peugeot, Ram, and Vauxhall.