Stellantis Shares Bounce 4.18% Despite Two Target Downgrades
Stellantis NV's stock regained momentum on Wednesday, March 4, climbing 4.18% to 6.45 euros after closing at 6.19 euros in the previous session. This recovery occurs amidst a significant downturn, with the automaker's stock having lost nearly 35% over three months and 48% over a year. Two target price downgrades by leading banks earlier in the week frame this movement.
Recent Analyst Caution
The day's rebound should not overshadow the renewed caution from analysts regarding Stellantis NV. Recently, Citi lowered its price target from 9.00 to 8.00 euros while maintaining a neutral recommendation, still suggesting a potential upside of about 25% from the current price. On the same day, Bernstein made a much more severe cut, reducing its target from 8.50 to 6.20 euros, below the day's trading price, with a 'market perform' recommendation. This latest valuation indicates a residual downside potential of about 3% as of this Wednesday's trading. These adjustments reflect a revision of the group's fundamental outlook. The annual general meeting scheduled for April 14 and the first-quarter results due on April 30 will be the next key events that could provide visibility to shareholders.
Technical Perspective
From a technical standpoint, Wednesday's rise keeps Stellantis's stock price above its support threshold identified at 6.14 euros, a floor tested during recent sessions. This level has acted as a support zone, allowing the stock to bounce back after flirting with its recent lows. However, the stock is significantly below its 50-day and 200-day moving averages, located at 8.07 and 8.51 euros respectively, indicating a well-established downward trend in the medium and long term. The Relative Strength Index (RSI) stands at 45, in a neutral zone, confirming that the stock is neither in extreme oversold condition nor in a bullish turnaround phase. The monthly volatility remains high at 32.13%, indicating marked price fluctuations. In this context, the day's rebound can be seen as a temporary recovery move, with the stock remaining technically under pressure as long as it stays distant from its reference averages.
