Stellantis Shares Drop 4% Following Dual Downgrades by Analysts
Stellantis NV shares fell more than 4% on Monday, dropping to 6.64 euros amidst simultaneous downgrades in price targets by two major banks. The automaker's stock now shows a decline of nearly 28% over three months and more than 46% over a year, confirming a sustained downward trajectory.
Significant Analyst Revisions
Two notable revisions occurred this Monday regarding Stellantis NV. Citi reduced its price target from 9.00 to 8.00 euros while maintaining a neutral recommendation. Compared to the current price of 6.64 euros, this target suggests a potential revaluation of about 20%. On the other hand, Bernstein made a much more severe adjustment, lowering its target from 8.50 to 6.20 euros, accompanied by a 'market performance' recommendation. This new target is below the current price, implying an additional downside risk of about 7% according to the bank. These opinions converge towards a diagnosis of persistent fragility for the group resulting from the merger between PSA and FCA, just weeks before its general assembly scheduled for April 14, followed by the publication of its first-quarter results on April 30.
Technical Perspective
Technically, the stock's momentum remains downward. The price of 6.64 euros is significantly below the 50-day moving average, set at 8.22 euros, indicating a bearish trend that has been established for several weeks. This significant gap of more than 19% between the price and the MA50 illustrates the magnitude of the correction suffered by Stellantis NV. Concurrently, the RSI (Relative Strength Index, which measures the speed and intensity of price movements) is at 70, a level generally considered as a temporary overbought zone, possibly related to a temporary rebound observed in recent days before today's decline. The technical support identified at 6.14 euros is the next level to watch if the decline continues. Monthly volatility remains high, at 31.65%, reflecting significant price variations over the recent period.
