Deutsche Bank has revised its outlook for Stellantis NV (NYSE:STLA, EPA:STLA), cutting the target price to €14 from €23, driven by expectations of a significantly weaker third quarter.
Analysts at the bank anticipate a decline in revenues due to softer volumes and pricing in North America, as Stellantis moves to reduce its inventories by cutting production and lowering prices on certain models.
The bearish forecast comes after a shocker of a Wednesday for the Jeep, Vauxhall and Citroën manufacturer.
Shipments declined 20% in the third quarter. Meanwhile, some 21,000 hybrid SUVs are being recalled in the US because of a potentially defective brake pedal, with thousands of vehicles outside of the US also affected.
Stellantis did not disclose full financial details in its trading update.
According to Deutsche Bank analysts, third-quarter sales will likely fall 34% year-on-year to €29.79 billion, down from €45.14 billion in the same period last year, “mainly driven by the situation in North America” where dealership inventory is being wound down.
Full third-quarter results are due on 31 October.