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RBC Capital Downgrades Stellantis NV(STLA.US) to Hold Rating, Cuts Target Price to $14.28

Futu News ·  Oct 4 13:32  · Ratings

RBC Capital analyst Tom Narayan downgrades $Stellantis NV (STLA.US)$ to a hold rating, and adjusts the target price from $18.77 to $14.28.

According to TipRanks data, the analyst has a success rate of 42.0% and a total average return of 1.8% over the past year.

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Furthermore, according to the comprehensive report, the opinions of $Stellantis NV (STLA.US)$'s main analysts recently are as follows:

  • Stellantis has issued a substantial profit warning, which stands out among those observed. The lack of detailed operational strategies to rejuvenate the company's sales and profitability post-2024 makes it challenging to anticipate a robust earnings recovery in 2025.

  • The reassessment of Stellantis' status was influenced by a delay in recognizing the company's inventory challenges in the U.S. and diminishing market shares across Europe and America. The analyst has revised EBIT estimates downwards by as much as 45% extending to the year 2026.

  • The revision in expectations for Stellantis followed similar actions from peers, with the extent of the guidance cut being notably unexpected. Current forecasts imply a significant yield, suggesting Stellantis may have the capacity to increase its payout ratio. While this is not factored into the immediate projections, it is highlighted as a potential positive development for the future.

Note:

TipRanks, an independent third party, provides analysis data from financial analysts and calculates the Average Returns and Success Rates of the analysts' recommendations. The information presented is not an investment recommendation and is intended for informational purposes only.

Success rate is the number of the analyst's successful ratings, divided by his/her total number of ratings over the past year. A successful rating is one based on if TipRanks' virtual portfolio earned a positive return from the stock. Total average return is the average rate of return that the TipRanks' virtual portfolio has earned over the past year. These portfolios are established based on the analyst's preliminary rating and are adjusted according to the changes in the rating.

TipRanks provides a ranking of each analyst up to 5 stars, which is representative of all recommendations from the analyst. An analyst's past performance is evaluated on a scale of 1 to 5 stars, with more stars indicating better performance. The star level is determined by his/her total success rate and average return.

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