Stellantis: share falls on Barclays downgrade

(CercleFinance.com) - On Thursday, Stellantis shares suffered the biggest drop on the CAC 40 after Barclays downgrading them to 'equal weight' from 'overweight'.


At around 2pm, the automotive group's share price fell by 3.8% to a two-year low, while its European sector index was down less - around 1.6%

Barclays, which also slashed its target price from E23 to E12.5, acknowledged that it had been wrong about the dossier in view of the severe warning issued by the automaker last week.

In particular, the broker acknowledges that it took too long to become aware of problems concerning inventory levels and market share losses in both Europe and the US.

The analyst, who points out that the stock is now down 41% this year, compared with an 11% decline for the STOXX Europe 600 Automobiles & Parts index, says he does not expect a recovery before H1 2025, which has led him to cut his earnings forecasts for 2024-2026 by 33% to 45%.

To make matters worse, it now appears that the number of vehicles recalled for recurring engine problems (belt on 'PureTech' blocks) will exceed the number of new cars sold in 2024.


Copyright (c) 2024 CercleFinance.com. All rights reserved.