Stellantis stock rating reiterated at Underperform by Wolfe Research

Published 21/07/2025, 14:10
Stellantis stock rating reiterated at Underperform by Wolfe Research

Investing.com - Wolfe Research maintained its Underperform rating and EUR6.00 price target on Stellantis NV (NYSE:STLA) following the automaker’s profit warning and weak first-half 2025 results.

The automaker reported adjusted operating income of only EUR0.5 billion for the first half of 2025, significantly below consensus estimates of EUR1.8 billion. Stellantis also posted an industrial free cash flow burn of EUR3 billion, worse than market expectations of EUR1.8 billion.

The company recorded an additional EUR3.3 billion charge for platform cancellation costs and restructuring, resulting in a net loss of EUR2.3 billion for the first half of the year. First-half revenues and second-quarter shipments were largely in line with Wolfe Research’s forecasts.

Wolfe Research attributed Stellantis’s weak performance to structural challenges including declining deliveries, very low capacity utilization, unprofitable North American operations exacerbated by tariffs, and ongoing free cash flow burn.

The research firm expressed skepticism about potential second-half improvement, noting that U.S. market share has stabilized but is not recovering, tariff costs are expected to increase, and new products in the U.S. are unlikely to make a significant impact in the second half of 2025.

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