Stellantis N.V.
Long

Stellantis | STLA | Long at $9.59

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Stellantis STLA is the maker of the auto brands Fiat, Peugeot, Jeep, Citroën, Opel/Vauxhall, Ram Trucks, Dodge, Chrysler, Alfa Romeo, Maserati, DS Automobiles, Lancia, Abarth, and Vauxhall. The stock has fallen sharply due to a 70% profit drop in 2024, weak U.S. sales, high inventory, and tariff uncertainties. The turnaround for STLA beyond 2025 hinges on new CEO Antonio Filosa’s focus on U.S. market recovery, new product launches (e.g., Ram 1500 Ramcharger, Jeep hybrids), pricing adjustments, aggressive marketing, $5B U.S. manufacturing investment, and mending dealer relations. The stock is trading at a P/E of 5.1x, debt-to-equity of 0.8x (not bad), a book value of $29 (undervalued), a tangible book value of $9.82, and earnings and revenue are forecasted to grow into 2028. Economic weakening and tariffs may hamper these predictions, but the new CEO and future interest rate drops may get this stock rolling again.

However, if STLA shows zero sign of near-term recovery or other fundamental issues arise, I truly think this stock could enter the high $5-$6 range before a true reversal begins.

From a technical analysis perspective, the stock price is currently with my selected "crash" simple moving average. This area often signifies a near-term bottom, but like mentioned above, watchout out for the "major crash" simple moving average area currently between $5.83 and $7.09.

Regardless of bottom predictions, STLA is in a personal buy zone at $9.59 with a greater position likely if it enters my "major crash" zone, as mentioned above.

Targets into 2027:
  1. $12 (+25.1%)
  2. $14 (+46.0%)

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