Stellantis Shares Fall 1.28% Midday Following Morningstar DBRS Downgrade
Stellantis shares are down 1.28% at 8.28 euros this Monday, January 26 at midday, following a downgrade by Morningstar DBRS from BBB (high) to BBB with a negative outlook. The agency cites ongoing challenges in revenue and profitability over the past two years as the reason for this decision.
Morningstar DBRS lowered Stellantis' credit rating by one notch from BBB (high) to BBB on January 23, maintaining a negative outlook. This decision is impacting Stellantis' stock price, which shows a decline of 1.28% to 8.28 euros in mid-session trading. Over the week, the stock has lost 4.28% and over three months, it has dropped 11.41%, with the annual performance significantly negative at minus 34.76%. Technically, the situation remains challenging. The Relative Strength Index (RSI) is at 22, indicating an oversold condition that could suggest a short-term technical rebound. However, the price continues to trade below its 50-day moving average at 9.25 euros, confirming a persistent downward trend. The stock is currently testing its major support threshold at 8.08 euros, a critical level below which further bearish acceleration could materialize.
Persistent Challenges in Revenue and Profitability
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Morningstar DBRS's decision is based on persistent challenges affecting the multinational group's revenue and profitability for the past two years. The agency anticipates revenue growth of 6% to 8% between 2026 and 2028, with profitability remaining well below the levels of 2023, which were around 16%. This outlook comes as Morningstar DBRS expects an industrial EBITDA margin close to 5% and an industrial gross leverage of approximately 3.0 times for the fiscal year 2025. On the analyst front, recommendations remain mixed. Berenberg raised its price target to 10 euros on January 19 while maintaining a buy recommendation, whereas Jefferies has the most optimistic target at 13.05 euros. Conversely, Bernstein remains cautious with a target at 8.50 euros, and Bank of America prefers a neutral stance at 10.30 euros. Investors are now awaiting the publication of the 2025 annual results scheduled for February 26, a milestone that should provide more clarity on the group's operational trajectory in an automotive environment marked by the electric transition and increased competition.
Nos résultats pour l’année 2025 reflètent le coût d’une surestimation du rythme de la transition énergétique et la nécessité d’entreprendre un « reset » pour replacer au cœur de notre activité la liberté de choix de nos clients.
Stellantis publie les résultats annuels 2025 avec un chiffre d’affaires net de 153,5 milliards d’euros et une perte nette de 22,3 milliards d’euros, principalement due à des charges exceptionnelles. Le deuxième semestre 2025 montre une reprise de la croissance et une amélioration du free cash flow industriel. Disponibilité de liquidités industrielles à 46 milliards d’euros; le dividende 2026 est suspendu et des obligations hybrides jusqu’à 5 milliards d’euros peuvent être émises. Perspectives 2026 affirmées avec une progression attendue du chiffre d’affaires net, de la marge AOI et du free cash flow industriel; accélération attendue entre H1 et H2 2026.
Outlook / guidance
Expected revenue: Prévision d’un chiffre d’affaires net en hausse de milieu à un chiffre pour 2026, avec une amélioration progressive entre le premier et le second semestre.
Expected EBITDA: Marge AOI à un chiffre dans la fourchette basse en 2026; amélioration de la génération du free cash-flow industriel attendue.
Expected net income: Perspectives 2026 axées sur une amélioration progressive du chiffre d’affaires, de la marge AOI et du free cash-flow industriel.
Management commentary: La société réaffirme ses perspectives pour 2026 et prévoit des améliorations progressives entre H1 et H2 2026.
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