Piper Sandler cuts Stellantis to 'underperform' on Chinese competition concerns
STLA•Analyst rating breakdown
Out of 28 analysts that cover Stellantis, six rate the stock "buy," 17 rate it "hold" and five maintain a "sell" rating - LSEG data.
Pressure on market share and margins
"The situation will likely get worse before it gets better (and it might not get better)," Piper Sandler says, flagging severe competitive pressure across STLA's key regions.
Global automakers also need to balance the needs of government, unions, suppliers and dealers at the same time, it adds.
"Market share hasn't recovered as quickly as we had hoped, and we're beginning to suspect margin downside," Piper Sandler concludes, slashing its PT by 71% to $4.
Piper Sandler double downgrades Stellantis
Piper Sandler double downgraded Stellantis STLAM.MI to "underperform" from "overweight", warning that Chinese competition in Europe, Latin America and the Middle East threatens the earnings recovery of the multi-brand carmaker.
The brokerage notes three Chinese original equipment manufacturers (SAIC, BYD and Chery) have captured roughly 7.5% of Europe's vehicle market - Stellantis's highest-volume region - up sharply from a fraction of a percent five years ago.
