Stellantis stock falls 2% and tests its 20-day MA, under market pressure
Stellantis ranks at the bottom of the CAC 40 on Monday, in a Paris market already under pressure. Two analyst opinions published today fuel the trading session, including a Morgan Stanley downgrade that moves the automaker to underweight.
A 2% decline bringing the stock to contact with its 20-day moving average
Stellantis falls 2% during the session to €4.58, in contact with its 20-day MA at €4.59, representing a near-zero gap of -0.12%. This threshold has become a pivot point: the stock had broken through it several times in recent weeks, before attempting to stabilize in this zone. Higher in the structure, the 50-day MA at €4.81 remains 4.69% above the current price, and the 200-day MA at €6.60 is more than 30% away, reflecting the magnitude of the decline underway over the past year (-42.61% over twelve months). The RSI at 50 remains neutral, with no clear directional signal in either direction.
Over the week, the stock loses 4.09%, and its decline reaches 22.3% over three months, a deterioration that continues the pressures experienced since the start of summer. The CAC 40 itself falls 0.85% during the session, in a context of significantly increased volatility: the VIX index surged nearly 14.6% compared to the previous session, amid a "super week" for central banks (Fed on Wednesday, Bank of England on Thursday, Bank of Japan on Friday). Brent exceeds $107 per barrel during the session, at the highest level of the year, which increases household costs and weighs on automotive demand.
Morgan Stanley downgraded to underweight with €4.50 target, CIC Market Solutions maintains hold
Two analyst opinions were published on Monday, September 14, on the automaker. Morgan Stanley lowered its opinion from "equal-weight" to "underweight" and reduced its price target from €5.70 to €4.50, a level 1.8% below the current price. This negative positioning comes as the stock precisely tests its 20-day MA, a threshold which, if broken, would open the way toward support at €4.38. CIC Market Solutions, for its part, maintains its "hold" opinion with an unchanged target at €5.50, which represents a rebound potential of nearly 20% compared to current levels.
The divergence between the two banks reflects persistent uncertainties surrounding the group's business model. According to the consensus of surveyed analysts, Stellantis stock trades at approximately 8.4 times expected earnings for the current fiscal year and 4.0 times those of the following fiscal year. The €4.38 support level constitutes the next level to watch if selling pressure persists.
