Stellantis NV (NYSE:STLA) shares are trading lower Wednesday. Berenberg downgraded the stock to Hold from Buy and sharply cut its price target the previous session, citing weak margin recovery in North America. Here’s what you should know.
- Stellantis stock is testing lower boundaries. Why is STLA stock at lows?
Berenberg Downgrades Stellantis, Citing Weak Margin Recovery
Berenberg moved Stellantis down to Hold from a prior Buy rating Tuesday, slicing its price target nearly 35% to €5.10 from €7.80.
The bank’s concern centers on profitability failing to keep up as vehicle shipments bounce back, with North America standing out as the region where margins have been especially slow to follow deliveries higher, according to Investing.com. Berenberg also flagged that dealers continuing to work down excess inventory could put additional strain on sales figures through the back half of the year.
Stellantis Set to Showcase Nine Concept Cars at Paris Motor Show
Separately, Stellantis announced it will present nine concept cars and more than 60 vehicles across eight brands at the Paris Motor Show, running October 12 to 18. The showcase is meant to highlight the automaker’s renewed growth ambitions and continued progress on its FaSTLAne 2030 strategic plan, first unveiled in May.
Stellantis will occupy the show’s largest booth, spanning more than 5,300 square meters in Hall 4 of the Porte de Versailles Exhibition Centre, featuring vehicles ranging from urban micromobility to long-distance travel. International premieres will include the DS N°7 premium compact SUV, the new Fiat Grizzly, the Lancia Gamma marking that brand’s return to the C-UV crossover segment, Leapmotor’s B03 compact electric vehicle and D19 flagship SUV, and the Opel Corsa GSE.
Stellantis CEO Antonio Filosa and Enlarged Europe COO Emanuele Cappellano are set to attend each brand’s press conference at the event. Design chiefs Ralph Gilles and Gilles Vidal will present the company’s design strategy, while Chief Engineering and Technology Officer Ned Curic will lead a roundtable on the company’s new STLA One modular platform on Monday, October 12, from 3:15 a.m. to 3:45 a.m. ET.
STLA Shares Are Dipping
STLA Price Action: Stellantis shares were down 2.35% at $4.98 at the time of publication on Wednesday. The stock is trading at a new 52-week low, according to Benzinga Pro.
Image: Rikstock/Shutterstock
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