Stellantis (STLA) Stock Rated Equalweight by Morgan Stanley After Strategy Concerns

Core Viewpoint - Stellantis N.V. (NYSE:STLA) is considered one of the best undervalued European stocks, despite recent downgrades from Morgan Stanley, which highlighted concerns regarding the company's investments, product pipeline, market share, margins, free cash flow, and leverage [1][2]. Group 1: Company Performance - Morgan Stanley downgraded Stellantis N.V. from Overweight to Equalweight, raising the price target to EUR9.20 from EUR8.50, citing the company's lagging performance in several key areas compared to its peers [1]. - Stellantis has experienced significant underperformance relative to other European automakers, although its product selection is gradually improving, which may lead to gains in the U.S. and other markets [2]. Group 2: Market Position and Strategy - The company's exposure to U.S. markets is seen as a structural long-term benefit, as the U.S. market is expected to remain relatively insulated from competition from China for the foreseeable future [3]. - Stellantis designs, engineers, manufactures, distributes, and sells a range of vehicles and mobility services globally, indicating a broad operational scope [3].