Stellantis Shares Bounce 3% and Move Out of the CAC 40's Bottom Three
The Italo-American manufacturer regains some ground after a tough period that brought it to multi-year lows. The stock climbs to the forefront of the Parisian index despite JP Morgan's target downgrade earlier in the day. This rebound comes after the stock has been heavily penalized for several weeks.
A 3% Bounce Only Partially Recovers the Monthly Decline
Stellantis shares gain 3.04% to €4.81, rising to second place in the CAC 40 behind ArcelorMittal. This rebound barely softens a calamitous month: the stock remains down 20.26% over the last thirty days and nearly 45% over a year. Technical analysis confirms the underlying deterioration, with the price remaining below its three main moving averages, showing a 37.57% gap below the MM200 at €7.71.
The RSI at 29 indicates an oversold configuration that accompanies today's rebound, consistent with the recent multi-year lows documented in Wednesday's session. The identified support threshold at €5.27 remains above the current price, meaning the stock is trading in already broken territory. The index context remains unhelpful: the CAC 40 is stagnant at -0.04% and the SBF 120 is down 0.02%, making the stock's performance stand out sharply from the rest of the market.
JP Morgan Significantly Lowers Price Target to €6 and Shifts to Neutral
JP Morgan has downgraded its view on the manufacturer, shifting from overweight to neutral and lowering its target from €10 to €6. Based on the current price, this target represents a potential upside of about 25%, but it primarily reflects a 40% downward revision from the old target. This move echoes the downgrade by another broker at the beginning of July, mentioned during the July 3 session when the stock broke below €5.
According to the consensus of analysts surveyed, the stock is trading at about 5.9 times the earnings of the current fiscal year and 3.2 times those of the next fiscal year, multiples that reflect the extent of skepticism about the group's earnings prospects. Therefore, today's rebound should be seen within a technically deteriorated configuration, with the next medium-term resistance at the MM20 at €6.14, nearly 28% above current levels.
