Stellantis In Hot Water: Analyst Downgrades Stock Due To Downward Pricing Pressure And Inventory Issues
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RBC Capital analyst Tom Narayan downgrades Stellantis (NYSE:STLA) from Outperform to Sector Perform, lowering the price forecast for the Paris-listed stock to 13 euros ($14.25) from 17 euros.
The analyst notes that if the company can resolve its inventory issues without sacrificing prices, margins could rebound to double digits, which would be competitive with Ford Motor Company (NYSE:F) or General Motors Company (NYSE:GM).
Stellantis’ U.S. dealer inventories improved in September, decreasing to 90 days from 94 in August and 109 in July, with a goal of reaching the mid-70s by year-end.
Also Read: Stellantis Recalls More Than 129K Ram 1500 Trucks
A concern for investors is that pricing may need …
Full story available on Benzinga.com
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