Stellantis: Stifel slightly trims TP
(CercleFinance.com) - Stifel maintains its Buy rating on Stellantis shares, slightly reducing its target price for them from E29 to E27.
While Stellantis will announce its H1 2024 results on 25 July, Stifel reports that at the end H1 2024, inventories remained 'stubbornly high' and that shipments are expected to be down again by double digits in Q2 (with North America hardest hit).
Since the CMD of 13 June, investors have known that 2024 would be a year of transition, with a 'visibly' more difficult first half and - hopefully - a second half showing sequential improvements, the analyst says, who indicates that the split between H1 and H2 is likely to be "rougher" than previously modelled.
Against this backdrop, the broker lowers its EPS by 5% (average '24-26), mainly due to lower volumes.
Stellantis' status as a market darling has been tarnished recently, and it may have to show evidence of better execution in the second half (notably on FCF) to regain lost ground, the broker concludes.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
The information and analyses published by Cercle Finance are intended solely as a decision-making aid for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.
While Stellantis will announce its H1 2024 results on 25 July, Stifel reports that at the end H1 2024, inventories remained 'stubbornly high' and that shipments are expected to be down again by double digits in Q2 (with North America hardest hit).
Since the CMD of 13 June, investors have known that 2024 would be a year of transition, with a 'visibly' more difficult first half and - hopefully - a second half showing sequential improvements, the analyst says, who indicates that the split between H1 and H2 is likely to be "rougher" than previously modelled.
Against this backdrop, the broker lowers its EPS by 5% (average '24-26), mainly due to lower volumes.
Stellantis' status as a market darling has been tarnished recently, and it may have to show evidence of better execution in the second half (notably on FCF) to regain lost ground, the broker concludes.
Copyright (c) 2024 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
The information and analyses published by Cercle Finance are intended solely as a decision-making aid for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.