07:25 AM EDT, 07/21/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
We cut our target price to USD7.40 (from USD9.40), based on a rolled-forward 2026 P/E of 4.1x, which reflects the four-year average. STLA's preliminary H1 2025 numbers reveal a surprising net loss of EUR2.3 billion, with adj. operating income of just EUR0.5B from EUR8.5B in H1 2024, indicating an adj. operating margin of 0.7% versus 10.0% in the prior year. This deterioration stems from EUR3.3B in pre-tax charges, including program cancellations and platform impairments, higher industrial costs, adverse foreign exchange impacts, and EUR0.3B in direct tariff costs. We lower our EPS forecasts by reversing our 2025 EPS estimate to a loss of -EUR3.10 from EUR1.90, while cutting 2026's by 35% to EUR1.56 from EUR2.40, due to impairment charges and lower operating margin assumptions. H1 2025 results are scheduled to be announced on July 29, 2025. We downgrade to Sell from Hold given the substantial upcoming H1 2025 losses amid continuing issues in securing merger cost synergies and adverse U.S. tariff implications.