Stellantis: Berenberg starts coverage as buyer
(CercleFinance.com) - On Tuesday Berenberg announced that it is initiating coverage of Stellantis, recommending investors buy the stock, as part of a broad study devoted to the automotive sector.
The German broker, which has set a target price of 21 euros for the share, believes that the group's objective of maintaining "double-digit" profit margins over the next decade seems "credible".
Berenberg explains that the company can rely on a quality management team, post-merger synergies, economies of scale and above all a low-capital investment model, which favours technological partnerships rather than costly in-house developments.
This should enable the company to position itself well, being flexible in the face of short-term uncertainties, both in terms of volumes and cost inflation, as well as in the face of the longer-term challenges posed by the transition to electric vehicles, the analyst points out.
The share is up almost 3% in late morning trading today.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
The German broker, which has set a target price of 21 euros for the share, believes that the group's objective of maintaining "double-digit" profit margins over the next decade seems "credible".
Berenberg explains that the company can rely on a quality management team, post-merger synergies, economies of scale and above all a low-capital investment model, which favours technological partnerships rather than costly in-house developments.
This should enable the company to position itself well, being flexible in the face of short-term uncertainties, both in terms of volumes and cost inflation, as well as in the face of the longer-term challenges posed by the transition to electric vehicles, the analyst points out.
The share is up almost 3% in late morning trading today.
Copyright (c) 2022 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.