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Investing.com - Bernstein has reduced its price target on Stellantis NV (NYSE:STLA) to $11.70 from $12.40 while maintaining a Market Perform rating. The stock, currently trading at $9.68, has declined nearly 26% over the past six months, though InvestingPro analysis suggests the company is undervalued at current levels.
The adjustment follows Stellantis’ suspension of its fiscal year 2025 guidance amid uncertainties surrounding tariff impacts, policy evolution, and overall market volatility, as explained during the company’s Q1 2025 revenue call on April 30.
According to Bernstein, Stellantis appears better positioned than Ford or General Motors (NYSE:GM) to mitigate auto tariff impacts in North America and is working to recover market share in Europe through product-led initiatives.
The research firm noted that Stellantis likely faces increasing competition in its "Third Engine" markets, suggesting the company’s challenges may be more international in nature.
Bernstein emphasized that while CFO Doug Ostermann handled the earnings call well, Stellantis "urgently needs to appoint a new CEO" within the promised first half of 2025 timeframe to develop a revamped medium-term strategy addressing challenges across all continents.
In other recent news, Stellantis has reported preliminary first-half 2025 results, revealing an adjusted operating income of €0.5 billion and negative industrial free cash flow of €3.0 billion. These figures fell short of expectations, with the company citing higher industrial costs, geographic and mix factors, foreign exchange challenges, and a €0.3 billion impact from U.S. tariffs as contributing factors. In light of these developments, Bernstein has lowered its price target for Stellantis to $9.30, due to concerns over vehicle volumes not meeting expectations. Wolfe Research has downgraded Stellantis from Peerperform to Underperform, expressing concerns about weak fundamentals and the North American truck business, setting a price target of approximately €6.
Citi has maintained a Neutral rating on Stellantis, also pointing to concerns about the automaker’s near-term recovery prospects. Morgan Stanley (NYSE:MS), however, continues to hold an Overweight rating on Stellantis with a €8.50 price target, despite acknowledging the decline in margins. In corporate leadership news, Stellantis has appointed Scott Krugger as the head of North America design. Krugger will oversee the creative direction and design strategy for the company’s North American brands, reporting to North America COO Antonio Filosa.
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