JPMorgan downgrades Stellantis to neutral, sees continued underperformance

According to CNBC, JPMorgan downgraded Stellantis (STLA) to neutral from overweight, saying the automaker is likely to keep underperforming as its turnaround takes longer to translate into market share gains. Analyst Jose Asumendi said the company still needs about 14 months to benefit from lower component purchasing costs that are expected to flow through to product launches in FY27/28, and that the investment case depends on a recovery in North American operations hit by destocking and vehicle price repositioning. He added that faster improvement would require sharp labor and capacity cuts across Europe and North America, and he expects a relatively slow second quarter with both regions near break-even margins and only moderate earnings progress into FY27/28. LSEG data cited by CNBC showed that among 12 analysts covering Stellantis, five rate it hold, four buy or strong buy, and three underperform; shares are down 50% year to date.