Sixt share: New deal and planned growth

Last Updated: 17. Januar 2024By

Sixt stock started the new year with significant losses after a strong year-end rally. While the car rental company’s stock had briefly surpassed the 100 euro mark, which it had not reached since summer, at the end of the year, it has since dropped by around 11 percent since the start of the year (as of January 17, 2024, approximately 11 am).

Now, Sixt has announced a major deal with Stellantis. In the next 3 years, up to 250,000 vehicles from the world’s fifth largest car manufacturer will be acquired for the rental company’s fleet. While the news initially did not benefit Sixt’s stock, the agreement underscores the company’s ambitious plans.

Sixt and Stellantis with a Deal With brands such as Peugeot, Fiat, Chrysler, and Opel, the automotive conglomerate Stellantis is one of the major players. And Sixt will be shopping in the department store for the next 3 years. The car rental company intends to purchase various classes, ranging from SUVs and smaller models to vans, with all types of drives from Stellantis.

Sixt emphasized that the Stellantis models will be a complement to the existing portfolio. There will continue to be a high proportion of vehicles from German manufacturers such as BMW or Mercedes-Benz. The first vehicles from Stellantis are expected to be delivered to Sixt in Q1 and, according to the company, the holding period could be around 7 to 8 months – after which the majority of the cars will be bought back by Stellantis.

Sixt Stock: Annual Report and Forecast Will Be Decisive Especially after the recent losses, investors are eagerly awaiting the upcoming quarterly figures. This will show whether Sixt can reach its own forecast of around 3.6 billion euros in sales and an EBT between 460 and 500 million euros. The outlook for the current year 2024 will be even more important.

In the long run, the development in North America will be crucial: the German car rental company plans to significantly increase its market share in the world’s most important market in the coming years. If Sixt can grow here in the medium term, the Sixt stock is also likely to benefit. Investors with a medium and long-term perspective should keep an eye on the currently not too expensive stock.