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Research Alert: CFRA Maintains Sell Opinion On Shares Of Stellantis
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Research Alert: CFRA Maintains Sell Opinion On Shares Of Stellantis
Jul 29, 2025 2:58 AM

05:40 AM EDT, 07/29/2025 (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 lift our target price to USD7.50 (from USD7.40), based on a 2026 P/E of 4.1x, which reflects the four-year average. H1 2025 net loss of EUR2.3 billion was not surprising due to impairments and additional U.S. tariffs, but the adjusted operating income (AOI) of only EUR540 million missed expectations, accounting for only 12-13% of our 2025 estimate and consensus' EUR4.3-EUR4.6 billion. STLA resumed financial guidance for H2 2025, projecting low-single-digit AOI margins and improved but still likely negative industrial free cash flows. We adjust 2025 EPS to -EUR0.94 from -EUR3.10 after revising the impact of U.S. import tariffs, which have been lowered to 15% from an earlier 27.5%. However, we keep our 2026 EPS at EUR1.56, which is 30% below consensus and has already accounted for the tariff-induced margin compression. We retain our Sell rating given the substantial H1 2025 losses amid continuing issues in securing merger cost synergies, adverse U.S. tariff implications and persistent structural issues.

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