The research firm sees potential for a turnaround at Stellantis as product delays ease and North American operations begin recovering from inventory corrections.

Stellantis NV was upgraded to ‘Buy’ from ‘Hold’ at Jefferies, which raised its price target on shares of the auto giant to $13.20 from $10.25, which implies an upside of over 37% from the last close. 

The stock closed up 2.5% at $9.69 on Tuesday, with shares rising another 1.5% to $9.73 in after-hours trading. 

The firm said the automaker’s earnings decline "is about to turn," backed by new leadership and operational course correction.

Jefferies analyst Philippe Houchois said Stellantis’ new internal CEO can move fast on overdue decisions, from brands to footprint and technology.

Houchois acknowledged the auto sector remains pressured, but said that many of Stellantis’ issues are “self-inflicted and fixable.” 

Product launch delays in Europe are easing, and in North America, model repositioning is progressing after a “painful de-stocking,” the analyst noted.

The rating change follows the appointment of Antonio Filosa as CEO, who officially took charge on Monday. 

On his first day, Filosa announced he would retain oversight of Stellantis’ North American operations and American brands. 

CFO Doug Ostermann was also given added responsibility for mergers, acquisitions, and joint ventures.

Filosa, a Fiat Group veteran since 1999, previously served as CEO of Jeep and held regional COO roles across South and North America. 

He was appointed CEO by a board-led special committee chaired by Executive Chairman John Elkann.

Stellantis was formed from the 2021 merger of Fiat-Chrysler and France's PSA Group. 

Jefferies believes the company’s restructuring costs are “material but manageable” as it aims to reset its strategy under Filosa’s leadership.

On Stocktwits, retail sentiment was ‘bullish’ amid ‘high’ message volume.

Investor sentiment toward Stellantis took a hit in April after the automaker reported a 9% year-over-year drop in global shipments to 1.2 million units in Q1, driven by reduced North American production due to extended January downtime and weaker light commercial vehicle volumes in Europe amid ongoing product transitions. 

Analysts have also flagged Stellantis' higher tariff exposure compared to Ford and GM, and concerns over EV pricing in the U.S. and margin pressures in Europe.

Stellantis’ stock has declined 25% so far in 2025.

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