rewrite this title and make it good for SEOTD Cowen reiterates Stellantis stock rating at Hold with improving outlook By Investing.com

Investing.com – TD Cowen has maintained its Hold rating and $10.50 price target on Stellantis NV (NYSE:STLA) following investor meetings with the company’s investor relations team. The automaker, currently trading at $9.43 with a market cap of $27.24 billion, appears undervalued according to InvestingPro analysis.

The research firm noted an “improving 3-6 month risk/reward setup” for the automaker, citing potential for better news flow including easier year-over-year volume comparisons, anticipated share gains, and improved margins leading up to the first quarter 2026 investor day. Currently offering a substantial 6.13% dividend yield, the company faces challenges with its gross profit margin of 8.19%.

TD Cowen observed that Stellantis stock has underperformed year-to-date as the company’s turnaround has progressed slower than initially expected, but product launches are now well underway and reportedly on track.

The firm described the situation as a “classic OEM turnaround setup whereby depressed sentiment suddenly encounters a string of positive news flow,” suggesting the near-term risk/reward profile is “skewing more favorably.”

Despite the improved short-term outlook, TD Cowen maintained its Hold rating, citing a desire for “greater conviction on the 12+ month turnaround trajectory” and clarity on the path to Stellantis’ long-term margin target of 6-8%.

In other recent news, Stellantis has been in the spotlight with several significant developments. Berenberg upgraded Stellantis from Hold to Buy, citing an improved outlook, and raised its price target to EUR9.50. This upgrade follows a challenging first half of 2025, where Stellantis reported an adjusted operating profit that barely broke even and negative free cash flow of EUR3.0 billion. Meanwhile, Bernstein lowered its price target for Stellantis to $11.70, maintaining a Market Perform rating, due to global uncertainties and the suspension of the company’s fiscal year 2025 guidance.

In addition to these analyst actions, Stellantis announced a $41 million investment in a new Mopar Parts Distribution Center in Forsyth, Georgia. This facility will support approximately 90 jobs and serve several of Stellantis’s brands throughout the Southeastern United States. On a broader scale, the European Union and the United States are advancing a trade pact that could lead to reduced tariffs on European automobiles, potentially impacting Stellantis and other automakers. The EU has also proposed removing tariffs on US industrial goods, which may further influence the automotive sector. These developments are crucial for investors monitoring Stellantis’s strategic moves and the broader automotive industry’s evolving landscape.

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