JPMorgan's analyst Jose Asumendi expressed concerns that Stellantis will require approximately 14 months to benefit from cost reductions in component purchasing, which will affect product launches scheduled for fiscal years 2027 and 2028.
The firm's North American operations have been adversely affected by destocking and price adjustments, necessitating significant workforce and capacity reductions in both Europe and North America for quicker improvements. Asumendi anticipates a slow second quarter with margins near break-even and only moderate earnings growth expected into fiscal years 2027 and 2028.
This downgrade aligns with the broader consensus on Wall Street, where out of 12 analysts, five recommend holding the stock, four suggest buying, and three rate it as underperforming. Stellantis shares have already declined by 50% year-to-date, highlighting the challenges the company faces in regaining investor confidence