Analysts Downgrade Stellantis as North American Business Struggles
- Stellantis stock drops after downgrades by Barclays and Bernstein analysts
- Analysts cut price targets for Stellantis due to weak North American sales and high dealer inventories
- CEO Carlos Tavares acknowledges marketing missteps
- Stellantis lowers full-year 2024 guidance for adjusted operating profit margins
Stellantis, the parent company of Chrysler and Jeep, has faced a setback after Barclays and Bernstein analysts downgraded its shares. High dealer inventories in the U.S. and weak sales have led to lowered expectations for the company’s performance. CEO Carlos Tavares admitted to marketing missteps, while analysts cut price targets and full-year guidance. Stellantis now expects adjusted operating profit margins between 5.5% to 7%, down from a previous call of double digits.
Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about Stellantis’s recent financial struggles, including specific numbers and details from analysts’ reports. It also includes relevant context and background information on the company’s performance and market reactions. However, it contains some personal perspective in the quote from Roeska, which slightly lowers the rating.
Noise Level: 6
Noise Justification: The article provides some relevant information about Stellantis’ financial performance and analysts’ reactions to it, but it is mostly focused on the downgrades and price target cuts, which may not be very informative or insightful for readers who are not invested in the stock. It also contains some filler content such as advertisements and repetitive information about the decline in Stellantis shares.
Public Companies: Stellantis (STLA), BMW (BMW)
Key People: Henning Cosman (Analyst at Barclays), Daniel Roeska (Analyst at Bernstein), Carlos Tavares (CEO of Stellantis)
Financial Relevance: Yes
Financial Markets Impacted: Yes
Financial Rating Justification: The article discusses the downgrade of Stellantis shares by Wall Street analysts and the impact on its stock price, as well as the company’s reduced full-year 2024 guidance due to falling sales and high dealer inventories. This affects financial markets and companies such as Stellantis and potentially related automotive stocks.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the article.
Move Size: The market move size mentioned in the article is 4.2% for Stellantis’ U.S.-listed stock in premarket trading and 46% price target cut by Barclays analyst Henning Cosman.
Sector: Automotive
Direction: Down
Magnitude: Large
Affected Instruments: Stocks
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