The shareholders’ meeting of Stellantis, chaired by John Elkann, approved with over 99.6% of yes the distribution of a maximum of 54,297,006 ordinary shares of Faurecia and of 308 million euros which are the proceeds received by Peugeot for the sale of Faurecia ordinary shares in October 2020. The CEO of the new group born from the merger between FCA and PSA, Carlos Tavares, also took part in the meeting.
Psa held 46% of Faurecia, then sold about 7% of it for 308 million euros and now the remaining shares (about 39% of Faurecia) and, in fact, the 308 million collected by Peugeot will be distributed to the shareholders of Stellantis. in 2020. The shareholders’ meeting will meet again on April 15 to approve the distribution of an extraordinary dividend of € 1 billion (€ 0.32 per share), already approved by the board of directors. Instead, Bestinver Securities expects the announcement of the Comau spin-off at a later time, probably in the second half of this year, an operation which, in his opinion, could be worth around € 0.3.
“We believe that Stellantis is only partially discounting the potential synergies deriving from the merger with PSA, at least 5 billion euros when fully operational, corresponding to 25 billion of additional value according to Tavares, and the positive impact of the merger in terms of financial risk profile , about 5 billion of net liquidity, and geographical distribution of sales, which will be well balanced between the EMEA area, 47%, and North America 45%, with a good presence in Latin America, 5%, but still weak in Apac , 2% “, said Bestinver, which has a buy rating and a target price of between 14 and 15 euros on Stellantis, also because it continues to trade at a discount of approximately 23% compared to its competitors.
Not to mention, Mediobanca Securities (outperform rating and target price at € 20.70) pointed out, citing press rumors, that the top management of the group has already started the cost reduction program which should translate into a part of the 5 billion euro. expected synergies. In particular, cost reduction should involve logistics / distribution, supply chain and other G&A costs, not labor costs. The restructuring could involve the internalisation of some production phases previously supplied by external suppliers.
“A positive news as we consider the restructuring of production capacity in Europe as one of the main pillars of the integration between FCA and PSA”, continued Mediobanca, recalling that the EMEA market for FCA closed 2019 at breakeven and lost 918 million. euros in 2020. And as Tavares himself stated during the last conference call, this year the company’s restructuring process will begin to focus on the supply chain, leveraging size. “In the medium term, synergies will come from the migration of new products on common platforms, from the efficient use of the powertrain application and from the elimination of duplicated technological development, mainly in the field of electrification, connectivity and
Buy also confirmed by Citi with a target price of 20 euros. “After the 2020 results we have updated the estimates to reflect the strong underlying trends”, underline the analysts of Citi, cited by the Mf-DowJones agency. “Our margin target for 2021 is 6.7% compared to management guidance of 5.5-7.5%”, added Citi experts, according to whom the valuation of the stock is interesting at the current multiples. . And on the stock market Stellantis shares jumped 4.58% to 14.308 euros for a 42.6 billion market capitalization. (All rights reserved)
