Stellantis Shares Drop to 5.63 Euros Following Citi Downgrade
Stellantis NV continues its downward trajectory this Thursday morning, declining by 2.32% to 5.63 euros at the start of the session. The automaker's stock is now trading below its technical support threshold, amid a declining Paris market, with the CAC 40 down 1.64% during the session. On the same day, Citi revised its price target on the stock downwards.
Citi Adjusts Stellantis Price Target
The American bank Citi released an update this Thursday, March 19, on its recommendation for Stellantis, lowering its price target from 8.00 to 7.00 euros while maintaining a neutral stance on the stock. Compared to the current price of 5.63 euros, this new target suggests a potential upside of about 24%. However, this revision also illustrates the ongoing deterioration in expectations for the stock: over three months, Stellantis NV has declined by 43.75%, and the loss reaches 51.38% over one year. The annual general meeting scheduled for April 14, followed by the first-quarter results on April 30, will be the next key events that could provide new insights to market participants.
Stellantis Breaks Below Support Level
At the start of the session, Stellantis' share price broke below the identified support level of 5.71 euros, settling at 5.63 euros. This breach occurs as the stock is significantly below its 50-day and 200-day moving averages, located at 7.29 and 8.35 euros respectively, indicating a firmly established downward trend over multiple time horizons. The RSI, a momentum indicator measuring the relative strength of the movement, is at 29, a level close to the so-called 'oversold' zone (below 30), signaling particularly strong selling pressure. The next technical resistance is at 8.68 euros, a considerable gap of more than 54% from the current price. On the Paris market, the SBF 120 is down 1.65% during the session, while other major industrial stocks such as Schneider Electric (-3.00%) and Airbus (-2.81%) also recorded significant declines this morning.
