The stock of Stellantis NV has experienced a remarkable increase today, currently trading at around €8.10. This development is attributed to strong demand, making the company one of the big winners on the stock market.
Critical Voices and Market Influences
Despite these positive market movements, there are also critical voices. UBS recently drastically lowered its price target for Stellantis stocks from €16.00 to only €8.80 and downgraded the stock from ‘Buy’ to ‘Neutral’. Analyst Patrick Hummel expressed concerns about the turnaround in the U.S., particularly due to new auto tariffs of 25%, which have been in effect since April 2 and hit Stellantis harder than its U.S. competitors. These tariffs could lead to a loss in North America, significantly affecting future profit forecasts.
Long-term Challenges
Additionally, analysts have cut their earnings per share estimates for 2025 and 2026 by around 50%. Uncertainties in global trade and rising tariffs further dampen the company’s growth potential. Despite these challenges, there remains some upside potential: the average price target among analysts is about €13.05, implying an increase of around 70% compared to the current price.
Overall, the situation presents a mixed picture: while strong demand supports the stock price in the short term, long-term perspectives are under pressure due to external economic factors. Investors should carefully monitor these developments and consider whether they wish to continue investing in Stellantis in light of the risks.