Stellantis Falls 2.15% Midday After HSBC Raises Target

Current Market Performance

Stellantis' stock shows a decline of 2.15% this Tuesday, January 13, at midday, standing at 8.80 euros compared to 9 euros the previous day. Over seven days, the stock now shows a significant drop of 8.4%, while the annual performance remains heavily penalized with a fall of 28.31%, reflecting the structural difficulties of the Franco-Italian-American manufacturer in a deeply changing automotive sector. The price is now clearly below its 50-day moving average positioned at 9.32 euros, a technical breach that constitutes a short-term weakness signal. More concerning, the relative strength index stands at 25, in a marked oversold area, indicating persistent exhaustion. This bearish pressure occurs even as HSBC raised its price target this Tuesday to 10 euros from 8.50 euros previously while maintaining its hold recommendation, representing a theoretical upside potential of 13.6% from the current price. The stock is trading just below its major support at 9 euros, a psychological threshold whose sustained breach could pave the way for a test of the 200-day moving average at 8.69 euros.

Analyst Opinions and Market Context

HSBC's target increase comes in a context where analyst opinions remain deeply divided on the Stellantis case. On January 9, Jefferies had raised its target to 13 euros with a buy recommendation, against 10 euros for Barclays with a market weight. This fragmentation of opinions reflects the uncertainties surrounding the automotive group's recovery capacity in a weakened European market and facing increasing Chinese competition. The pressure on the stock is also explained by the announcement on January 12 of the discontinuation of all Stellantis' plug-in hybrid programs in the North American market. This decision affects iconic models such as the Jeep Wrangler 4xe, the top-selling plug-in hybrid vehicle in the United States since 2021, as well as the Grand Cherokee 4xe and the Chrysler Pacifica Hybrid. The group is refocusing its electrification strategy on non-rechargeable hybrids and range-extender vehicles, marking a sharp strategic turn after having targeted 170,000 PHEV sales per year by 2024. This transition occurs in a context where the federal subsidies of 7,500 dollars have been removed and where demand for these powertrains has slackened in North America.