Stellantis stock is poised between new all-time highs and a bearish reversal despite the excellent news coming from sales in Europe. The stock of the company born from the merger of the FCA group and the PSA group, in fact, overtook the German Volkswagen for the first time in terms of the number of cars sold in the European Union alone.
Unfortunately, this figure comes in an October that saw the volume of the car market collapse due to the chip crisis. According to the data released today by Acea, the European Association of Car Manufacturers, 798,693 cars were registered in the European Union, EFTA countries and Great Britain, -29.3% compared to 1,129,211 in October 2020. Stellantis saw a decline of “only” 33% in sales compared to the previous year, to be compared with the -44% of the Volkswagen group.
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From the point of view of market multiples, Stellantis shares are highly undervalued. According to earnings multiples, Stellantis shares could double in value alone to align with the industry average. Furthermore, the stock has a very low valuation level, with a company value estimated at 0.27 times its turnover.
Analysts are also very optimistic about the stock with an average consensus to buy and an average target price that expresses an undervaluation of over 30%.
The Stellantis stock is poised between new all-time highs and a bearish reversal: the indications of the graphical analysis
The title Stellantis (MIL: STLA) closed the session on November 19 down by 2.51% compared to the previous session at € 17.514.
Weekly time frame
The current trend is bullish, but it has stayed in the saddle for a hair. As can be seen from the graph, in fact, the weekly closing was very slightly above the support in the 17.482 euro area. A close below this level, in fact, would give a strong boost to the bears who would take over if the support in the € 17.064 area breaks. In this case, the Stellantis stock would immediately head towards the 1st price target in the € 15.23 area. Subsequent bearish targets are indicated by the red dashed line in the figure.
If, on the other hand, the bullish trend were to hold, then the bullish objectives are those indicated in the figure by the solid red line.
Deepening
