Stellantis: Barclays downgrades its recommendation

(CercleFinance.com) - On Thursday, Barclays downgraded its recommendation on Stellantis shares to 'in-line weighted' from 'overweight'.


The analyst, who also lowered his target price from 23 to 12.5 euros, acknowledges in a research note that he was wrong about the company in view of the severe warning issued by the manufacturer last week.

In particular, the research firm admits that it took too long to become aware of problems concerning inventory levels and market share losses in both Europe and the United States.

Barclays, which 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 it does not expect a turnaround before the first half of 2025, leading it to cut its earnings forecasts for the 2024-2026 period by 33% to 45%.

In its research note, however, the professional believes that the prospect of achieving annual free cash flow (FCF) of around six billion euros in the medium term is not "inconceivable".

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