Stellantis Shares Plunge at Close Following Bank of America's Cautious Stance
Stellantis shares ended sharply lower on Friday, January 16, 2026, dropping 2.94% to 8.397 euros amidst low activity. Bank of America initiated neutral coverage, noting expected strengthening in the US but challenges in Europe.
The Franco-Italian-American automaker recorded a decline of 2.94% from the previous day's close of 8.65 euros, confirming a downward trend over a seven-day period of -10.77%. Trading volume was limited to 0.11% of the capital. On Thursday, Bank of America established a neutral recommendation on the stock with a target price of 10.30 euros, representing a potential upside of 22.6% from Friday's close. The analyst anticipates a strengthening of Stellantis in the United States, its main profit pool, but warns of weakness in Europe. This cautious stance adds to successive downward revisions by analysts, with Bernstein lowering its target to 8.50 euros last Tuesday and Barclays to 10 euros at the beginning of January. The Relative Strength Index (RSI) has dropped to 30, close to the oversold zone (threshold below 30), suggesting intense selling pressure in the short term. The stock has also broken through its support level at 8.65 euros, paving the way for a possible test of lower levels.
Underlying Trends and Strategic Decisions
Free · Every morning
Technical market signals, before the opening bell.
Bullish and bearish momentum, analyst changes, stocks to watch — automatically computed from Euronext data.
✓ Before 9 AM every morning✓ Euronext data✓ AI-powered analysis
Almost there! Check your inbox.
A confirmation email has been sent. Click the link to confirm your subscription.
An error occurred.
Indicative data. No investment advice. Unsubscribe at any time.
The stock is now trading below its 50-day moving average of 9.32 euros and 200-day moving average of 8.69 euros, indicating a consolidated downward trend. This deviation from the moving averages reflects persistent investor skepticism towards the group's challenges: uncertain electric transition, pressured North American market, and increased Chinese competition. The very negative Money Flow Index (CMF) at -0.32 indicates sustained capital outflows, confirming a lack of buying interest. This unfavorable climate follows recent strategic decisions by new CEO Antonio Filosa, who last Monday announced the discontinuation of Jeep hybrid SUVs and Chrysler minivans due to slowing electric vehicle sales. This strategic revision, aimed at refocusing efforts on the Jeep and Ram brands, reflects a desire for recovery but weighs on investor morale in the short term. Markets are awaiting the publication of the 2025 annual results on February 26, a crucial date to assess the group's ability to execute its recovery plan in what the CEO has called a 'year of execution'.
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.
The information presented in this article is provided for informational purposes only and does not constitute an investment recommendation, an incentive to buy or sell a financial asset, or investment advice. Readers are invited to conduct their own research before making any decision.
Investments in the stock market involve risks, including the risk of capital loss. Past performance of an asset or market is no guarantee of future results. Any investment decision should be made taking into account your personal financial situation, objectives and risk tolerance.
