Stellantis attempts recovery after Friday's debacle

 (Il Sole 24 Ore Radiocor) - Stellantis is attempting a timid recovery, after the more than 25% collapse on Friday 6 February, the day on which the auto group unexpectedly issued a maxi profit warning. Since the beginning of the year, however, the shares of the carmaker have plunged 51%. Last Friday, analysts were taken aback by the announcements of the group led by Antonio Filosa and as proof they revised their estimates and price targets on the stock.

Stellantis predicted that expenses of around EUR 22.2 billion are to be expected in the second half of 2025, with cash outflows expected to be around EUR 6.5 billion over the next four years out of that amount. In the second half of last year, the car company is expected to have posted a loss of 19-21 billion. However, the final figures for 2025 will be released on 26 February. However, a stop to dividend payments has already been announced, while the issuance of up to EUR 5 billion of hybrid perpetual bonds has been authorised to preserve the investment grade profile.

Analysts at Equita have immediately revised downwards their estimates for the period 2026-27 (on average -3% for revenue, -33% for adj. ebit and -34% for net profit). "Consequently, the price target has been cut by 17% to EUR 7.9 per share," explained the experts, who advised a 'Hold' on Stellantis shares. After all, they pointed out, the operating results indicated for the second half of 2025 'are worse than expected, the cash-out for non-recurring charges well above estimates, and the guidance for 2026 also showed a slower-than-expected recovery at the operating level'.

Intermonte also commented: 'in light of weaker results and guidance, we have reduced our estimates and price target to EUR8.5 from EUR12'. However, the sim remains constructive towards the auto group and therefore reiterated its 'Outperform' recommendation. Ubs also reiterated its 'Buy' on Stellantis, although it revised its price target downwards from EUR 12 to EUR 9.7.