Analyst Sees Over €10B Annual FCF For Stellantis, Despite Forecasting Lower Earnings In FY24-25
Portfolio Pulse from Lekha Gupta
Bernstein analyst Daniel Roeska has upgraded Stellantis N.V. (NYSE:STLA) to Outperform from Market-Perform with an increased price target of $26.40. Despite forecasting lower earnings in FY24-25, Roeska is optimistic about the company's future, citing strong regional exposure and growth opportunities. He expects Stellantis to generate over €10 billion in annual FCF in FY24 and FY25, and sustainably generate more than €22 billion operating cash flow annually. However, he lowered the earnings estimate by 5% for FY24 and 12% for FY25 due to the slowing macro and pricing environment in the U.S. and Europe.
November 01, 2023 | 7:42 pm
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Stellantis has been upgraded to Outperform from Market-Perform by Bernstein analyst Daniel Roeska, with an increased price target of $26.40. Despite forecasting lower earnings in FY24-25, the analyst is optimistic about the company's future.
The upgrade by Bernstein analyst Daniel Roeska is a positive signal for Stellantis. Despite the forecast of lower earnings in FY24-25, the analyst's bullish outlook, citing strong regional exposure and growth opportunities, is likely to have a positive impact on the company's stock in the short term. However, the lowered earnings estimate due to the slowing macro and pricing environment in the U.S. and Europe could potentially limit the upside.
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