Key Moments
- Kepler Cheuvreux downgraded Stellantis to Hold from Buy. It also cut earnings forecasts for 2026 and 2027.
- In addition, the firm lowered its global light vehicle demand and production outlook. It cited the impact of the Iran war, especially in Europe.
- As a result, Kepler reduced its price target by about 17% to €7.50. It now expects Europe to remain loss-making in 2026.
Brokerage Moves to More Cautious Stance
Kepler Cheuvreux downgraded Stellantis to Hold from Buy on Thursday. It also cut its earnings estimates for 2026 and 2027. The firm pointed to weaker global demand as the main reason.
Moreover, Kepler reduced its forecasts for global light vehicle demand. It also lowered production expectations. The broker said the Iran war will likely hit European demand.
Margin Pressure and Regional Outlook
Kepler warned that Stellantis faces margin pressure. Higher input costs and rising oil prices are key drivers. However, the recovery in profitability remains slow.
The firm described the turnaround as progressing in “baby steps.” It sees only gradual improvement in margins so far.
As a result, Kepler cut its price target by around 17% to €7.50. It now expects Europe to stay loss-making in 2026. It also sees faster margin deterioration in the company’s third engine.
| Item | Previous View | Revised View |
|---|---|---|
| Stock rating | Buy | Hold |
| Price target | Not specified | €7.50 (about 17% lower) |
| Earnings outlook | Higher estimates for 2026-2027 | Reduced estimates for 2026-2027 |
Focus on Upcoming Capital Markets Day
Despite the downgrade, Kepler still expects important updates from Stellantis. The company will hold its Capital Markets Day on May 21.
Meanwhile, the brokerage expects a full review of the brand portfolio. It also expects a refreshed strategy and new financial targets.
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