Stellantis in the spotlight; analysts are predicting a recovery in the fourth quarter

(Il Sole 24 Ore Radiocor)- Expectations of a recovery in volumes in the fourth quarter of the year, following September figures that were broadly in line with forecasts, are driving the share price of Stellantis on the Milan Stock Exchange. On the eve of the market close, the company announced that new car registrations in Italia rose by 12.6% in September, compared with a market increase of 9.92%. Analysts at Equita, however, point out that the performance is better than the market’s “only when including Leapmotor”, without which it would have underperformed the average. Overall, the experts note that “Stellantis’s registrations in the main European countries in September show a rebound in France, but underperformance relative to the market in both passenger cars and light commercial vehicles, a further recovery in Italia, but’—as they point out—‘only managed to outperform the market when Leapmotor is included’.

As for the third quarter in the United States, ‘new car registrations remained stable year-on-year, not yet benefiting from the new models’, although the mix is ‘nevertheless positive for Ram’s growth’. “We expect the recovery to be more pronounced in the fourth quarter,” notes Equita, “both in terms of volumes, with a greater contribution from new models (in the United States, particularly the Jeep Cherokee), and due to the growing impact of cost savings.”

“In the European countries that have so far reported their figures”, accounting for around 60 per cent of the region’s volume, notes Intermonte , “third-quarter growth stands at +6 per cent, in line with our estimate”. However, Sim adds, “the figure excluding Leapmotor is +2 per cent, with the product mix driven by Fiat and light commercial vehicles down by 8 per cent”. “The September figures confirmed regional divergence, with the European market performing better than the United States,” concludes Banca Akros. Stellantis showed a cyclical improvement in the US market compared with August, but its market share remains below last year’s levels, whilst the group continues to lose momentum in Europe, excluding Leapmotor.”