MW Stellantis gets a downgrade. Its rebound may never come, analyst warns.

By Steve Goldstein

Parent of Jeep, Ram, Chrysler, Fiat, Maserati and more

The new chief executive of Stellantis faces a mountain of problems, and it's too early for investors to go bottom fishing in the Jeep and Ram truck maker, a new research note published Monday says.

Bank of America cut its rating on Stellantis to neutral from buy and cut its price target to 10 euros ($11.75) per share from 16 euros.

Stellantis stock $(STLA)$ (IT:STLAM) fell 3%, to below $10, in early New York trade.

Analysts led by Horst Schneider say new CEO Antonio Filosa, who started in late June, faces issues including U.S. tariffs on Mexican imports but more so the need in Europe to push electric vehicles to meet carbon targets.

In Europe, it's building these vehicles on a multienergy platform, without particularly good results. For example, the Peugeot e3008 has a larger battery than peer models from Tesla $(TSLA)$, Renault (FR:RNO) and Hyundai (KR:005380) but achieves similar real-life range, the analysts say.

They're more optimistic on U.S. potential, given model upgrades in the works, reduced incentives for electric vehicles and protections from Chinese competition.

While the stock has dropped about 55% since its capital markets day last year, a rebound doesn't look near, the analysts say.

"Stock pickers may think that a stock like Stellantis needs to be bought at the darkest hour before dawn, but we are not sure if that moment has already come or maybe ever come again amid the ongoing tech disruption in the auto industry with new players joining the market," the Bank of America team said.

A capital markets day could occur early in the fourth quarter but is more likely in the first quarter of 2026, at which time 2030 targets could be set out. "We think only around that event [will investors] will take a more constructive view on the Stellantis equity case," the analysts say.

-Steve Goldstein

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July 07, 2025 10:26 ET (14:26 GMT)

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