JPMorgan downgrades Stellantis on delayed cost-cutting benefits, reducing earnings forecasts by 30% for 2026-2028.
JPMorgan downgraded Stellantis (STLA) to Neutral from Overweight and lowered its price target to €6 from €10. The move reflects expectations that the automaker’s restructuring efforts will take longer to boost earnings than previously anticipated.
Analyst Jose Asumendi cited a 14-month delay before cost savings from lower component procurement impact new vehicle launches in 2027 and 2028. Without major workforce or capacity reductions in Europe and North America, margin recovery is expected to lag.
Earnings estimates for 2026-2028 were cut by an average of 30%. The revised €6 target is based on a 0.4x EV/Sales multiple and 7x forward earnings. Shares fell 1.8% in U.S. pre-market trading and 0.8% in Milan.