Stellantis Shares Fall After Morgan Stanley Downgrades Stock to Underweight

Stellantis Shares Fall After Morgan Stanley Downgrades Stock to Underweight

Mon, September 14, 2026 at 4:24 PM GMT+3 2 min read

• STLA -2.96%
• RNO.PA -0.91%

Stellantis (NYSE:STLA) shares fell more than 2% on Monday after Morgan Stanley downgraded the automaker to Underweight from Equal Weight and reduced its price target to $5.20 from $8.00.

The rating change formed part of a broader review of European automakers by analysts led by Javier Martinez de Olcoz Cerdan.

The analysts cited changes in Stellantis' inventories and incentives and said "the product pipeline is lagging behind peers," which they said could limit the company's ability to reduce investment as cash generation declines.

Morgan Stanley Highlights Stellantis Risk-Reward Range

Morgan Stanley said Stellantis has "the widest risk/reward skew in the sector."

The analysts identified refinancing as one potential risk, while asset disposals or changes to the United States-Mexico-Canada Agreement could affect the company's outlook in other scenarios.

Renault Upgraded to Equal Weight

Morgan Stanley separately upgraded Renault to Equal Weight from Underweight and increased its price target to €31 from €25.

The analysts described Renault as "the company with the largest increase in our estimates," citing its exposure to the European automotive market and the potential impact of regulatory measures concerning Chinese vehicle imports.

Morgan Stanley maintained Overweight ratings on Mercedes-Benz and BMW, raising its Mercedes-Benz price target to €59 from €58 and its BMW target to €76 from €74. Mercedes-Benz remains the firm's preferred stock in the sector.

European Auto Estimates Raised

Volkswagen's price target was increased to €89 from €77, with its Equal Weight rating maintained, while Porsche remained rated Underweight.

On the wider European automotive sector, Morgan Stanley said it believes the cyclical margin bottom is "behind us," citing company cost and restructuring measures and write-offs following management changes during the previous year.

The bank raised its 2026 and 2027 estimates for the European automotive sector for the first time since April 2024, with its forecasts now slightly above consensus.

Stellantis stock price