Stellantis N.V. (BIT:STLAM) Analysts Are Pretty Bullish On The Stock After Recent Results

Shareholders of Stellantis N.V. (BIT:STLAM) will be pleased this week, given that the stock price is up 13% to €18.58 following its latest half-year results. The results were positive, with revenue coming in at €98b, beating analyst expectations by 2.0%. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for Stellantis

Following last week's earnings report, Stellantis' 22 analysts are forecasting 2023 revenues to be €189.1b, approximately in line with the last 12 months. Statutory earnings per share are forecast to drop 11% to €5.58 in the same period. Before this earnings report, the analysts had been forecasting revenues of €185.1b and earnings per share (EPS) of €4.81 in 2023. So it seems there's been a definite increase in optimism about Stellantis' future following the latest results, with a solid gain to the earnings per share forecasts in particular.

With these upgrades, we're not surprised to see that the analysts have lifted their price target 5.6% to €23.17per share. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Stellantis, with the most bullish analyst valuing it at €39.00 and the most bearish at €17.00 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 0.9% by the end of 2023. This indicates a significant reduction from annual growth of 26% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 3.5% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Stellantis is expected to lag the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Stellantis' earnings potential next year. They also upgraded their revenue estimates for next year, even though it is expected to grow slower than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Stellantis going out to 2025, and you can see them free on our platform here.

It is also worth noting that we have found 3 warning signs for Stellantis (1 is concerning!) that you need to take into consideration.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.