JPMorgan Downgrades Stellantis to Neutral as Turnaround Efforts Lag Behind Market Expectations]

JPMorgan Downgrades Stellantis to Neutral as Turnaround Efforts Lag Behind Market Expectations]

Stellantis’ shares are expected to remain under pressure as the company’s turnaround initiatives require more time to translate into measurable market share improvements, according to JPMorgan. The investment bank has moved its stance on the automotive manufacturer, downgrading the stock from overweight to neutral rating.

Analyst Jose Asumendi noted that the company needs approximately 14 months for cost savings from lower component purchases to flow through to product launches scheduled for fiscal years 2027 and 2028. “The STLA investment case largely depends on the successful turnaround of North American operations, which have faced headwinds from inventory destocking and pricing strategy adjustments for vehicles in the region,” Asumendi said in a client note.

The analyst anticipates a sluggish second quarter performance, with both European and North American operations remaining near break-even margins while showing gradual earnings improvement toward FY27/28. JPMorgan’s downgrade aligns with broader Wall Street sentiment, where 5 of 12 covering analysts rate the stock as hold, four as buy or strong buy, and three as underperform.

Stellantis, which owns brands including Dodge, Fiat, Jeep, Chrysler, Ram, and Peugeot, has seen its shares plummet 50% year-to-date amid ongoing challenges in translating operational improvements into financial results and market position gains.

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