Stellantis stock breaks its €4.20 support and loses 50% in one year
The Italian-American carmaker crosses a symbolic downward threshold on Tuesday, breaching a technical level that has been closely monitored over several sessions in a nearly stable CAC 40. Analyst downgrades add to a fundamentally tense configuration, with the security now posting more than 50% decline over one year.
The €4.20 support gives way under pressure, Stellantis among the biggest CAC 40 decliners
Stellantis fell 0.98% to €4.19 during the session, ranking among the biggest decliners on the CAC 40 while the Paris index traded virtually flat (-0.08%). The downward breach of the €4.20 support is the session's most significant development: the stock has fallen through this level and failed to recover it, remaining below this threshold. This break below an already weakened floor extends a continuous deterioration, with a decline of nearly 10% over the month and 25% over three months. The technical configuration remains deeply degraded.
The price trades well below the 20-day moving average (€4.54, -7.7% variance) and the 50-day moving average (€4.75, -11.8% variance), while the 200-day moving average at €6.45 stands more than 35% above the current price. The RSI at 39 approaches the oversold zone without entering it yet, reflecting progressive exhaustion but not yet constituting a reversal signal. The next identified resistance is found at €4.88, approximately 17% above the current price.
Analyst views under pressure and a valuation reflecting market distrust
Two recent analyst views are weighing on the stock's momentum. Evercore ISI lowered its price target on Monday from €7.00 to €5.50 while maintaining a "market perform" rating, signaling a significant downward revision from the price level at the start of the week. CIC Market Solutions, for its part, maintains today its "hold" rating with an unchanged target at €5.50, representing a potential upside of approximately 31% versus the current price, which illustrates the gap between analyst targets and current market reality.
Based on expected earnings per share according to the analyst consensus, the stock trades at approximately 7.3 times the current fiscal year earnings and only 4 times next fiscal year earnings, a low valuation reflecting the depth of market distrust. As a reminder, when first half 2026 results were published on July 30, the Pro One division showed 7% growth with strong increases in electric vehicle orders, but the market remains focused on risks linked to electric van price alignment with diesel, which is weighing on margins. The €4.20 threshold, now lost, becomes the first resistance to recapture for any stabilization scenario.
