Stellantis: CAC's worst performer, as RBC cuts TP
(CercleFinance.com) - Stellantis shares are the worst faller in the CAC 40 index on Tuesday morning, with the automotive group's share penalised by RBC comments, which lowered its target price on the stock.
The Canadian broker, which maintains its 'outperform' opinion on the stock, has, however reduced its target price for it from E24 to E18.
In a note, the broker points out that the recent announcement of longer inventory lead times at the automaker's US dealerships has come as a "nasty surprise" to investors.
RBC fears that this phenomenon will lead to a deterioration in the average selling price of its vehicles, not only in H2 2024, but also in 2025.
Following these comments, the share price fell by almost 2% in early trading on Tuesday, bringing its fall since the start of the year to over 35%.
Copyright (c) 2024 CercleFinance.com. All rights reserved.
The Canadian broker, which maintains its 'outperform' opinion on the stock, has, however reduced its target price for it from E24 to E18.
In a note, the broker points out that the recent announcement of longer inventory lead times at the automaker's US dealerships has come as a "nasty surprise" to investors.
RBC fears that this phenomenon will lead to a deterioration in the average selling price of its vehicles, not only in H2 2024, but also in 2025.
Following these comments, the share price fell by almost 2% in early trading on Tuesday, bringing its fall since the start of the year to over 35%.
Copyright (c) 2024 CercleFinance.com. All rights reserved.