Shares of automaker Stellantis STLA, +3.50% STLA, +1.10% rose 3% to €15.02 in Milan as Deutsche Bank started coverage at buy with a €20 price target. Analyst Tim Rokossa says the merger of PSA and FCA will make it the fourth-largest automaker by sales, and that CEO Carlos Tavares is in an ideal position to combine the two companies’ strengths. “Stellantis is a clear buy, in our view, due to the reasons for which investors traditionally chase auto stocks: earnings and cash flow momentum. Its lack of BEV product focus will limit the multiple that the market is willing to pay for, in our view,” he added.
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