Piper downgrades Stellantis on years required to fix problems

Piper Sandler downgraded Stellantis (STLA) to Neutral from Overweight with a price target of $13, down from $23. Piper believes it could take years for Stellantis to address the problems with its global brand, and in the meantime, the firm thinks the company’s margins could take longer than expected to recover. Stellantis now lacks a CEO, while attempting to manage more tariff risk than General Motors or Ford, the analyst tells investors in a research note. The firm says the company’s U.S. electric vehicles “seem too pricey,” and in Europe, its EV sales may dilute margins. Piper thinks the automaker stocks aside from Tesla should be avoided.