Bernstein lowers Stellantis stock price target to $9.30 on volume concerns

Published 07/08/2025, 16:54
Bernstein lowers Stellantis stock price target to $9.30 on volume concerns

Investing.com - Bernstein SocGen Group has reduced its price target on Stellantis NV (NYSE:STLA) to $9.30 from $11.70 while maintaining a Market Perform rating on the stock. The stock, currently trading at $9.22, has declined over 26% in the past six months, though InvestingPro analysis suggests it remains undervalued based on its Fair Value metrics.

The adjustment comes as Stellantis continues to experience vehicle volumes that lag behind expectations, according to Bernstein analyst Stephen Reitman’s research note released Thursday.

Stellantis had previously pre-released its preliminary first-half 2025 results during an ad hoc announcement and CFO conference call on July 21, with the official release and full CEO/CFO conference call following on July 29.

The automaker reinstated its guidance for 2025 during its first-half results presentation, after having suspended it on April 30 due to uncertainties surrounding tariff developments. The new guidance is described as "more qualitative than quantitative."

Bernstein noted that Stellantis provided "a promise of sequential improvement" rather than the "absolute margin and cash flow corridors" that competitors in the automotive sector have been able to offer.

In other recent news, Stellantis announced its 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 due to increased industrial costs, geographic and mix factors, foreign exchange challenges, and a €0.3 billion impact from U.S. tariffs. Despite this, Morgan Stanley (NYSE:MS) maintained an Overweight rating on Stellantis, highlighting a price target of €8.50. However, Wolfe Research downgraded the company’s stock from Peerperform to Underperform, citing weak fundamentals and concerns about its North American truck business, with a price target of approximately €6.

Citi also maintained a Neutral rating on Stellantis, expressing concerns about the automaker’s near-term recovery prospects. In other developments, Stellantis appointed Scott Krugger as head of North America design, a newly created position aimed at enhancing the creative direction for brands like Chrysler, Dodge, Jeep, and Ram. Additionally, the company reported that its rare earth supplies have not been affected by recent curbs from China, according to Jean-Philippe Imparato, head of Stellantis’ European operations. These developments provide a comprehensive overview of the current state of Stellantis.

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