Freedom Keeps Stellantis Target at $6.80 After Quarterly Results

Stellantis N.V.’s (NYSE: STLA) recovery continues, but its pace remains below Freedom Broker’s previous expectations, notes senior analyst Dmitry Pozdnyakov. After the release of the third-quarter results, he maintained his “Buy” rating and the $6.80 target price.

Stellantis is an international automaker that объединяющий brands Jeep, Ram, Dodge, Chrysler, Peugeot, Citroën, Opel, Fiat, and others. The group produces passenger and commercial vehicles and operates in Europe, North and South America, and other regions. Freedom’s target price implies upside potential of about 45.3% relative to $4.68 used in the report.

Revenue Beat Market Forecast

Stellantis’ third-quarter 2026 revenue rose 1.1% year over year to €37.6 billion. The figure exceeded the FactSet consensus of €36.3 billion and Freedom’s expectations.

Higher deliveries in Europe and favorable FX dynamics in South America supported results. Revenue in each of these regions rose by about 3%. In North America, it fell by 3% amid lower deliveries. The company disclosed the figures in the quarterly report. 

Europe Offsets Part of North America’s Weakness

Consolidated deliveries totaled about 1.29 million vehicles—down 1.1% from a year earlier. In North America, deliveries declined 11.6% to 357 thousand vehicles. The main reason was planned summer production shutdowns, which hit Jeep the hardest. The decline was partially offset by new and refreshed Ram models.

In Europe, by contrast, deliveries grew 10.1% to 588 thousand vehicles. According to Freedom, the region’s momentum looks strong, but for now it is not sufficient to materially improve the group’s overall profitability.

Loss Narrowed, but Profitability Remains Low

Stellantis’ adjusted operating profit reached €256 million versus €90 million a year earlier. The adjusted operating margin improved from 0.2% to 0.7%. Net loss narrowed from €4.53 billion to €453 million. 

Adjusted loss per share was €0.01 versus the market’s expected €0.13. The improvement was driven by lower manufacturing costs and more efficient procurement, including the first results from the Value Creation Program.

This program is part of the FaSTLAne 2030 strategy and calls for cutting annual operating expenses by €6 billion by 2028. At the same time, higher raw-material costs continue to restrain the recovery, Pozdnyakov notes.

Company Reaffirmed Full-Year Guidance

Stellantis maintained its 2026 guidance: mid-single-digit percentage revenue growth and low-single-digit adjusted operating margin. The company also expects to achieve positive industrial free cash flow in 2027. 

Freedom forecasts revenue of about €164.9 billion in 2027, implying 2.5% growth. The analyst expects a return to positive net profit in the coming quarters but cut his financial forecasts for 2026–2028 due to the slower recovery.

Why the Recommendation Remained Unchanged

Earlier, Freedom lowered Stellantis’ target price to $6.80 after the release of weak deliveries data. At the time, analysts noted North America’s lag and expected support from model-range обновления. 

The new financial report confirmed improvement versus last year, but did not eliminate questions about the speed of the recovery. Freedom maintains the $6.80 target calculated on the basis of a five-year discounted cash flow model. To realize the upside potential, growth in profitability, execution of the cost-savings program, and a return to positive cash flow are important.

This is not an individual investment recommendation.