Stellantis NV has seen its share price target cut by Citi analysts on lingering “risks” at the car maker.
Vauxhall, Dodge and Fiat owner Stellantis last week unveiled a 70% slump in profit for 2024 to €5.5 billion ($5.7 billion), on a 17% drop in sales revenue to €156.9 billion.
Citi noted in response that the report, where “gaps in product offerings” and promotions to shift stock were cited, offered at least some context on any potential recovery.
However, while there “was plenty of scope for such recovery” from the second half of 2025, Citi said, risks remained.
Alongside likely weak earnings over the coming first half, new products were seen offering limited benefits, as pricing also remained negative in the US and possibly Europe.
“We don’t see a significant long-term adjusted operating income margin recovery without more assertive cost (capacity) reduction plans,” analysts added.
Citi cut Stellantis’ share price target from €13 to €12 as a result.
Shares were trading down 8.5% at €11.28 in Milan on Tuesday and were off 3.2% at $11.94 ahead of the open in New York.