Stellantis shares: Berenberg downgrades rating and price target amid margin concerns

(Il Sole 24 Ore Radiocor) - Selling in Stellantis on the Milan Stock Exchange (FTSE MIB ). Weighing on the share price is the assessment by Berenberg analysts, who, in a report on the European automotive sector, downgraded their recommendation on the share to “hold” from the previous “buy”, drastically lowering the target price to €5.1 from €7.8.

Experts’ concerns centre on the trend towards a recovery in margins, which in North America has lagged behind the recovery in volumes. According to Berenberg, this outcome also raises questions about the outlook for margins in the second half of the year, when the reduction in stock levels could become an obstacle to volumes. All the more so given that ‘one must take into account the headwinds from raw materials and prices that remain highly competitive, particularly in Europe’, where Chinese competition is making itself felt in the group’s ‘core’ segments. On the inventory front, analysts note that the significant increase in deliveries has brought stock levels back to 100 days, bringing them close to the danger zone, even though the momentum of the US market could weaken in the second half of the year. In any case, Berenberg admits, the situation is less critical than in 2024, as probably more than 75–80 per cent of stock consists of new models, which are priced more appropriately. Berenberg has therefore reduced its operating profit forecasts for the 2026–2028 period by around 15 per cent. At European level, analysts have confirmed their ‘buy’ rating on Volkswagen and upgraded BMW to “buy” from “hold”, whilst reiterating the “hold” recommendation on Renault , Porsche and Mercedes-Benz Group .