• Goldman Sachs began coverage of Stellantis with a 'Neutral' rating and said it shares the“attractive value” seen across undervalued premium automakers.
• The firm highlighted sector pressures from Chinese competition, electric-vehicle momentum and tightening European Union rules.
• BMW, Mercedes-Benz, Renault, Ferrari, Volkswagen, Porsche AG and Aston Martin Lagonda were all initiated with varying upside or downside expectations.

Stellantis NV offers the same“attractive value” Goldman Sachs sees across Europe's premium automakers, the bank's research arm said as it initiated coverage of several carmakers during what it described as“tumultuous times” for the sector. Goldman began coverage of Stellantis with a 'Neutral' rating and a $10 price target, implying a 1.3% upside from the last close. The firm said Stellantis shares its valuation appeal, identifying the most undervalued areas of the European auto industry.

Goldman Flags Market Pressure 

Goldman said European automakers face growing pressure as Chinese manufacturers expand globally and battery electric vehicle momentum accelerates. The firm added that European Union tariffs, currency swings, and tightening emissions rules are adding further strain. Goldman noted that BMW, Mercedes, Volkswagen and Renault now trade at negative industrial stub valuations, which it called“premature,” and said the premium segment remains the most undervalued part of the market.

Automakers Goldman Sees As Attractive Value Opportunities

Goldman highlighted several automakers that it believes offer meaningful upside. The company initiated BMW with a 'Buy' rating and a 112 euro price target, implying a 32% upside. Mercedes-Benz was also initiated with a 'Buy' rating and a 74 euro price target, representing a 30% upside. Goldman said it likes both BMW and Mercedes-Benz for their“healthy” balance sheets and“shareholder-friendly” capital allocation frameworks.

The bank initiated Ferrari with a 'Buy' rating and a $454 price target, giving the stock a 35% upside. Goldman said Ferrari's higher-priced Special Series volumes support stronger selling prices and growth.

Goldman also said Renault offers the same“attractive value” seen across premium automakers. The firm began coverage with a 'Neutral' rating and a 36-euro price target, implying a 5% upside. 

Automakers Goldman Views More Cautiously

Goldman initiated coverage of Volkswagen with a 'Neutral' rating and a 106-euro price target, giving it a 12% upside. Porsche AG was also initiated at a 'Neutral' rating with a 46 euro price target, representing a 29% upside.

Aston Martin Lagonda received a 'Neutral' rating and a 61-pound price target, which reflects a 1% downside. The bank's research arm highlighted structural concerns over Aston Martin's balance sheet.

Stocktwits Traders Back Stellantis, BMW, Renault 

On Stocktwits, automakers including Stellantis, BMW, Mercedes-Benz, and Renault all saw 'bullish' sentiment, though message volume was 'high' for Stellantis, 'normal' for BMW and Renault, and 'low' for Mercedes-Benz.

Porsche AG and Aston Martin Lagonda each recorded 'neutral' sentiment, with Porsche seeing 'low' message volume while Aston Martin registered 'normal' activity. Among the outliers, Ferrari drew 'bearish' sentiment on 'low' message volume, while Volkswagen saw 'extremely bearish' sentiment, also amid 'low' message volume.

So far this year, performance across U.S.-listed European automakers has been mixed. Stellantis is down 19%, Renault is down 15%, Ferrari is down 8%, and Aston Martin Lagonda is down 38%. Meanwhile, several peers have gained ground, with BMW up 25%, Mercedes-Benz up 26%, Volkswagen up 26% and Porsche up 14% year to date.

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