Stellantis: RBC on hold after Tavares leaves

(CercleFinance.com) - On Monday RBC Capital Markets renewed its 'sector perform' rating on Stellantis shares, along with to its E12 TP, following the announcement of Carlos Tavares's departure.


While noting that the automotive group's CEO was due to step down at the beginning of 2026, the Canadian broker couldn't help describing the news as 'surprising'.

RBC points out that the group is currently going through a period of convalescence, aimed at correcting its excessive inventories in America, both through production cuts and the introduction of promotional offers.

The broker says it expects this process to continue in 2025, this time through price cuts that could put a strain on profit margins.

According to RBC, it is this strategic orientation that is at the root of tensions that have arisen between the board of directors and Tavares.

The professional recalls that in a similar situation at Ferrari, John Elkann replaced Luis Camileri in December 2020 before appointing Benedetto Vigna in April 2021, a decision that was followed by a 140% surge in the sports car manufacturer's share price.

In view of new European CO2 standards, competition from China and the threat of US tariffs, RBC prefers to stay away from the stock.


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