Key Stats for Stellantis Stock
- Price Change: -23.7%
- Current Price: ~$7
- Advanced Model Target: $17
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What Happened?
Shares of Stellantis N.V. (STLA) collapsed 23.7% to close near $7 on Friday, marking one of the worst days in the company’s history as the “Auto Sector Crisis” accelerated.
The selloff was triggered by misjudging consumer demand for EVs, which led to cutting back on electric vehicle (EV) production.
Moreover, investors also panicked over the potential impact of new tariffs, which could devastate margins for automakers that rely on cross-border supply chains.
Furthermore, the crash follows similar moves from Ford (NYSE:F) and General Motors (NYSE:GM), confirming a sector-wide recession as high interest rates continue to crush consumer demand for new cars.
In response to the crisis, analysts at Bernstein slashed their estimates, citing a “broken pricing model” that will require massive incentives to clear the glut of cars.
However, the company announced a “Profound Strategic Reset”, including a €6.5 billion restructuring plan aimed at realigning its industrial footprint with lower demand.
Despite the gloom, some value investors are eyeing the stock’s single-digit P/E ratio, arguing that the market is pricing in a bankruptcy scenario that is unlikely given the company’s cash pile.
With the stock now trading at multi-year lows, the question is whether this is a “value trap” or the buying opportunity of a lifetime.
See analysts’ growth forecasts and price targets for Stellantis stock (It’s free!) >>>
Is Stellantis Undervalued Today?
During the emergency update call, CEO Antonio Filosa did not mince words about the challenges facing the company.
He stated: “What we announced today is a profound strategic reset… one that will put back our customers’ real needs at the center of everything we do.”
Regarding the financial impact of the restructuring, management outlined a clear path to clearing the overhang.
CFO Joao Laranjo noted: “Of the total EUR 6.5 billion… we expect about EUR 2 billion to be paid in 2026… industrial execution will be the major lever to enhance our profit.”
The leadership team is asking investors for patience, aiming to stabilize the ship by their Investor Day in May 2026.
Read the full Stellantis Transcript on TIKR to see the Restructuring Plan >>>
According to TIKR’s Advanced Valuation Model, the market’s reaction has been excessive, pushing the stock far below its intrinsic value.
- Target Price: $17
- Current Price: ~$7
- Potential Upside: +133%
Valuation Model Deep Dive
The investment case for Stellantis is now a deep value “turnaround” play.
The model suggests that even with conservative growth assumptions, the stock is priced for disaster rather than a cyclical downturn.
- The Fair Value Gap: At $7, the stock trades at a massive discount to the $17 target, offering 133% upside if management can execute the reset.
- The Growth Reality: The model assumes a modest 5.8% Revenue growth rate in the mid-case, relying on a recovery in volumes post-2026.
- The Profitability Check: While margins are currently under pressure (near break-even in the short term), the model forecasts a return to profitability (0.1% to 2.1%) as the €6.5 billion restructuring takes effect.
If Stellantis can survive the current storm and clear its inventory, the rebound to $17 would represent a massive multiple expansion.
Conclusion: A high-risk, high-reward contrarian bet. With a 132.8% upside potential to $17, Stellantis is strictly for investors who believe the auto sector will survive the “tariff winter” and emerge leaner on the other side.
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How Much Upside Does Stellantis Stock Have From Here?
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
