Stellantis: HSBC reduces its target price
(CercleFinance.com) - HSBC announced on Wednesday that it had lowered its target price for Stellantis from E21 to E18, while maintaining its 'hold' recommendation on the stock.
Following the weaker-than-expected half-year results published by the automotive group last week, the intermediary said it feared further setbacks for the manufacturer.
It fears that the 2024 financial year will prove particularly difficult, and anticipates an increasingly unlikely recovery in the second half of the year.
HSBC is particularly concerned by the 23% drop in sales of RAM pickups in the US in the second quarter, an underperformance which it deems worrying in view of forthcoming product launches.
Beyond that, he adds, CEO Carlos Tavares' admission that the time between vehicle design and production will lengthen suggests a transition period until at least 2025.
While he expects 2025 to be a smoother year, the analyst predicts a "very complicated" third quarter, and warns that short-term earnings pressures could cause the Group to miss its annual targets for 2024.
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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 decision-making aids 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.
Following the weaker-than-expected half-year results published by the automotive group last week, the intermediary said it feared further setbacks for the manufacturer.
It fears that the 2024 financial year will prove particularly difficult, and anticipates an increasingly unlikely recovery in the second half of the year.
HSBC is particularly concerned by the 23% drop in sales of RAM pickups in the US in the second quarter, an underperformance which it deems worrying in view of forthcoming product launches.
Beyond that, he adds, CEO Carlos Tavares' admission that the time between vehicle design and production will lengthen suggests a transition period until at least 2025.
While he expects 2025 to be a smoother year, the analyst predicts a "very complicated" third quarter, and warns that short-term earnings pressures could cause the Group to miss its annual targets for 2024.
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 decision-making aids 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.