Freedom Broker: new models put Stellantis on a growth trajectory

Automaker Stellantis N.V. (STLA) in the second quarter of 2026 delivered stronger results in vehicle shipments than the market expected. Analysts at Freedom Broker believe the key driver of the business recovery was the successful launch of new models in North America, and they maintain a “Buy” rating with a target price of $8.50 per share.

What Stellantis N.V. does and its financial performance

Stellantis was formed in 2021 through the merger of Fiat Chrysler Automobiles and Groupe PSA and today brings together 14 automotive brands, including Jeep, Ram, Dodge, Chrysler, Peugeot, Citroën, Opel and Fiat.

In recent months, Stellantis has been rebuilding its business in key markets. Earlier, the company reported plans to increase sales in North America by 35% by 2030. The main focus is on developing the group’s traditionally strong brands — Chrysler, Ram, Jeep and Dodge. 

At the same time, Stellantis is expanding its commercial vehicle business. The Stellantis Pro One division announced plans to launch 11 new commercial vehicle models by 2030, including electric, hybrid and conventional versions. 

In the first quarter of 2026, Stellantis already showed signs of a business recovery. The company’s revenue rose 6.5% year over year to €38.1 bn, shipments increased 11.8%, and net profit totaled €377 mln versus a €387 mln loss a year earlier. At that time, Freedom Broker analysts upgraded their rating on STLA shares to “Buy” with a target price of $8.50.

North America became Stellantis N.V.’s main source of growth

Shipment growth in North America is significantly outpacing the region’s auto market dynamics. Shipments in the region increased 37.7% to 445 thousand vehicles. The company attributes this result to an expanded lineup, including updated versions of the Ram 1500, Jeep Grand Cherokee, Jeep Grand Wagoneer, Chrysler Pacifica, as well as new generations of the Jeep Cherokee and Dodge Charger SIXPACK.

For the second quarter, Stellantis’ consolidated shipments grew 10.4% year over year to 1.59 mln vehicles. This is also 17.3% higher than in the first quarter of this year. The result exceeded Freedom Broker’s forecast, which assumed shipments at 1.53 mln vehicles. Against the backdrop of stronger operating momentum, analysts raised their revenue forecast for the second quarter from €42.8 bn to €43.7 bn.

Europe maintains steady momentum

In Europe, Stellantis shipments increased 5.4% year over year, reaching 762 thousand vehicles. The region remains the company’s largest, accounting for nearly half of all quarterly shipments.

The main growth driver was electric vehicles. Strong demand persisted for models built on the Smart Car platform, including the Citroën C3, Citroën C3 Aircross, Opel/Vauxhall Frontera and Fiat Grande Panda. Shipments of Leapmotor brand vehicles also made a positive contribution, with sales in Europe continuing to grow.

Weak regions are still weighing on results

Not all business segments are showing a recovery: in South America, shipments declined 2.7% to 253 thousand vehicles. Sales growth in Brazil was fully offset by weaker demand in Argentina.

In the Middle East and Africa, shipments decreased 3.2% to 121 thousand vehicles. According to the company, regional instability continues to have a negative impact. Particularly notable was the drop in shipments to the Persian Gulf countries, where sales fell by about 50%.

Freedom Broker raised its revenue forecast

Following the release of the operating results, Freedom Broker analysts improved their forecasts for the company’s financial metrics. They now expect Stellantis’ revenue for 2026 to total €164.9 bn, which is 7.4% above last year’s figure and above the previous forecast of €161.8 bn.

According to analysts’ estimates, earnings per share in 2026 could reach €0.70, and in 2027 could rise to €1.49 thanks to a further recovery in sales volumes and improved business efficiency. Despite ongoing risks from intense competition and trade restrictions, analysts consider the current valuation attractive and reaffirm their “Buy” rating.

This is not an individual investment recommendation.