Stellantis Shares Drop to €6.54: HSBC Lowers Target to €5.50
Automaker Stellantis falls 2.43% to €6.54 at midday, within a CAC 40 down by 1.34%. The stock ranks 35th in the Paris index. This movement occurs despite the announcement of a strengthened partnership with Dongfeng in China.
Partnership with Dongfeng Bolstered by One Billion Euros in China
Stellantis and Dongfeng Group announced this Friday the strengthening of their 34-year strategic partnership, with the joint production of Peugeot and Jeep vehicles within their joint venture DPCA. The two groups also signed a non-binding strategic memorandum of understanding. The announcement comes as Chinese macroeconomic indicators send mixed signals: the manufacturing PMI stands at 50.3 in April (expansion), while the non-manufacturing PMI remains in contraction zone at 49.4. Meanwhile, the group indicated that SPOT.i, its artificial intelligence-based search engine, has surpassed 3 million queries since its launch in September 2025. These announcements are not enough to reverse the downward trend of the day, in a market that is also trending down with Brent continuing its rise to $109.11 (+2.36%).
A Fragile Technical Setup Six Days Before the Investor Day on May 21
The stock price is at €6.54, below its 20-day moving average (€6.72, gap -2.74%) and significantly under the MM200 at €7.96 (-17.89%). The MM50 at €6.38 is the only moving average below the price; the support threshold (€6.07) and the lower boundary of the Bollinger Bands (€5.88) are also below the price. The RSI at 53 is neutral, with no marked directional signal. Over one year, the stock has declined by 32.58%, but maintains a weekly gain of 2.06%. From the analysts' side, HSBC lowered its price target yesterday from €6.50 to €5.50, while maintaining a 'hold' recommendation. This new target is 15.9% below the current price. Based on consensus, the stock is trading at about 7.3 times the expected earnings for the current fiscal year, compared to an average of 14.5 times for the Consumer Discretionary sector. The next significant event: Investor Day on May 21, 2026, where the group is set to detail its strategic orientations.
