Stellantis runs in GM's wake, but the market already looks to the quarterly report

(Il Sole 24 Ore Radiocor) - A breath of fresh air for Stellantis, which is the best of the FTSE MIB. The stock, which has been trading at around 54% since last March's highs above EUR 27, is nevertheless down. Support for the Italian-French group's stock, as well as for the entire automotive sector, came from overseas: on the eve of the event, General Motors gained 9.8% on Wall Street, after having reported profits and revenues down, but above analysts' forecasts and, above all, after having given a positive outlook for the coming months (it revised upwards its profit forecasts for the whole year for the third time in a row and improved expectations on adjusted EBIT and operating cash flow of the automotive business). Specifically, earnings fell to USD 3.1 billion and revenues by 10% to USD 48.8 billion. Among other things, analysts at Rbc Capital raised Gm's price target from $58 to $65 per share and confirmed the 'outperform' rating, explaining that 'in an environment where the industry is going at a slow pace and analysts are revising forecasts, Gm seems to be among the few names well positioned to cope with a complex situation, including from a pricing perspective'.

The fact that sales in the United States, Gm's largest and most profitable market, fell in the quarter does not seem to have weighed on Gm, but margins were supported by better pricing. If GM is looking positively ahead, despite the evident difficulties of the automotive market in the US and Europe, where electrics are experiencing more than one setback and Chinese competition is pressing, it remains to be seen whether other carmakers will be able to do the same. Volvo Cars reported higher-than-expected operating profits, but cut full-year guidance citing the slowdown in the auto industry. Bmw, which recently issued a profit warning, Volkswagen, which is grappling with high tensions at its factories in Germany, and especially Stellantis, which is going through a difficult period due to the inventory issue in the US,  declining sales in Europe and Italy, and friction with the Italian government over production, are soon to be called to the accounts test, and that will be an important test to understand the state of the art and the future vision of the various groups.

Analysts at Banca Akros do not have high expectations for Stellantis' quarterly report, due on 31 October, especially after the recent cut in guidance: "Stellantis' third quarter results are expected to be much weaker than Gm's, with volumes and prices under pressure. The US industry is starting to show some weakness in terms of mix and net pricing. Gm's solid results for the third quarter were a positive surprise in a slowly deteriorating market scenario,' they said.