Stellantis: RBC also downgrades stock

(CercleFinance.com) - On Friday downgraded Stellantis shares, from 'outperform' to 'sector perform', with a target price lowered from E17 to E13.


The Canadian broker justifies its decision by the 'profit warning' issued by the automotive giant at the beginning of the week, as well as an additional analysis carried out on the automaker.

In its view, a number of factors remain favourable to the dossier from a long-term perspective, such as the group's low exposure to the Chinese market, its good positioning in Europe in terms of decarbonisation, and the quality of its offering in the US.

RBC also believes that Stellantis could return to double-digit margins, much better than GM or Ford, provided that its de-stocking process does not come at the expense of prices.

Despite these encouraging factors, RBC points out that its research points to further pressure on tariffs, and therefore possible downward revisions to earnings forecasts for 2025.

Since its warning on Monday, Stellantis has been subject to numerous downgrades, and reductions in its target price and earnings estimates - notably by Barclays analysts yesterday.


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