AUS
NZ
UK
CA
USA
IND
Highlights
- Deutsche Bank Lowers Target Price: Deutsche Bank has cut Stellantis' target price from €23 to €14 amid a weak third-quarter forecast.
- Significant Decline in Sales: Third-quarter sales are expected to drop 34%, driven by reduced volumes and pricing in North America.
- Hybrid SUV Recall: Stellantis is recalling 21,000 hybrid SUVs in the US due to defective brake pedals, adding to the company’s challenges.
Deutsche Bank has revised its outlook for Stellantis NV (NYSE:STLA), reducing the target price from €23 to €14 due to an anticipated significantly weaker third quarter. The bank's analysts predict that Stellantis, the automotive giant behind Jeep, Vauxhall, and Citroën, will experience a notable decline in revenues, primarily driven by softer volumes and pricing in its key North American market.
The automaker is reportedly scaling back production and lowering prices on select models as part of an effort to reduce inventories. This move comes after a challenging Wednesday for Stellantis, which saw shipments drop by 20% in the third quarter. Adding to the company's woes, a recall was announced for 21,000 hybrid SUVs in the US due to potential brake pedal defects, with more vehicles outside the US also impacted.
Deutsche Bank's analysts project that Stellantis will post third-quarter sales of €29.79 billion, down 34% compared to €45.14 billion in the same period last year. This decline is largely attributed to the company's North American operations, where dealerships are reducing inventory levels.
Stellantis is set to release its full third-quarter results on 31 October.
