Automaker Stellantis reported better-than-expected Q3 revenues which confirms the exceptional results achieved for H1. For the first nine months, both revenues and volumes climbed 10% and management has confirmed FY23 guidance, which includes achieving double-digit operating margins and positive free cash flow.
Stellantis is expected to maintain pace and the current credit metrics should therefore improve on the back of ongoing merger synergies arising from the combination of Fiat Chrysler Automobiles and Peugeot.
The group’s electrification strategy is progressing well, and ongoing momentum here should be supported by new model launches, in line with the group’s long-term strategic plan, where it is aiming for battery electric vehicles (BEVs) to make up 100% of sales in Europe and 50% of sales in the US by the end of this decade.
There is an opportune risk/reward ratio for a selected number of EUR and USD bonds which offers excellent opportunities for long-term buy-and-hold oriented investors.