Freedom Capital Markets has moved Stellantis NV (NYSE:STLA) from a Hold to a Buy rating while reducing its 12-month price target to $9.00 from $11.30. The research house said the decision follows sequential growth in automotive deliveries during the second half of 2025, which it views as evidence of positive momentum in the automaker's core operations.
At the same time, Freedom lowered its price objective, reflecting a more cautious projection for the company’s future performance. The firm highlighted Stellantis’ own disclosure that it has "flagged the need to pivot strategy amid softer-than-expected EV demand," indicating the company is recalibrating its approach to electric vehicles in response to market conditions.
The juxtaposition of an upgraded rating and a reduced price target signals that Freedom Capital believes the current share price offers value despite a tempered longer-term outlook. The firm’s action suggests a view that nearer-term operational momentum outweighs some of the downside adjustments to longer-range assumptions.
The upgrade and revised target arrive amid a series of substantial corporate updates from Stellantis. The automaker said it will take approximately 44 billion in charges in the second half of 2025. Management framed the one-off charges as part of a strategic shift toward a broader mix of powertrains, acknowledging the company had overestimated the speed of the energy transition to electric vehicles.
Stellantis also provided an update on one-time charges and released preliminary numbers for the second half of 2025, along with an outlook for 2026. Those disclosures have prompted a range of responses from credit and equity analysts.
Moody's Ratings downgraded Stellantis’ long-term issuer rating to Baa3 from Baa2, citing significant downward revisions to profitability and cash flow expectations. In the equity research desk, Wolfe Research moved Stellantis from Underperform to Peerperform following a substantial decline in the stock after several negative company updates. Deutsche Bank trimmed its price target on Stellantis to 7.00 from 8.00 while keeping a Hold rating.
Separately, LG Energy Solution agreed to acquire full ownership of NextStar Energy by purchasing Stellantis’ 49 percent stake in the joint venture. The Windsor, Ontario battery facility has received more than CAD $5 billion in investment to date and plans to expand its workforce to 2,500 employees.
Taken together, the analyst moves, credit downgrade, corporate restructuring charges, and changes in joint-venture ownership outline a period of repositioning for Stellantis as it adapts product strategy and capital allocation in response to evolving market dynamics.
Sector impact: Automotive manufacturers, electric vehicle supply chain participants, and battery manufacturing are directly affected by Stellantis’ strategic revisions and the related analyst and rating actions.